Tuesday, July 3, 2007 at 11:26AM
In the interest of creating more shareholder value, Strathmore Minerals Corp is set to create Fission Energy Corp, a new company holding a number of their properties.
Strathmore will continue to own the American assets of the company and these are the assets that attracted us to Strathmore in the first place as these are the most valuable assets that include the most uranium and therefore are more appealing to those companies on the acquisition trail.
The Church Rock and Roca Honda projects in New Mexico are nearing production and the projects in Wyoming are also very interesting to us.
Fission Energy will take control of the non-core assets of the company, its exploration projects in Canada and Peru. Fission Energy will trade on the Toronto Venture Stock Exchange as a separate entity.
Fission Energy will take over C$500,000 cash along with the Duddridge Lake property in Saskatchewan, Macusani project in Peru and the Dieter Lake project in Quebec.
We will provide more analysis once the deal is done, but at this time we see no reason to sell Strathmore stock and we will probably continue to hold Strathmore and feature it in our uranium stocks portfolio after the spin off. However we are as yet undecided on whether to hold Fission Energy Corp.
Strathmore Minerals Corporation trades on the TSX Venture as STM and has a market cap of just under C$300 million.