Uranium Explorer Aims To Gain Institutional Support

To bolster its outreach to prospective investors and existing shareholders, Tisdale Clean Energy Corp. (TCEC:CSE; TCEFF:OTCQB; T1KC:SE) has engaged media marketing firm, Senergy Communications Capital Inc., which will provide investor relations and communications services for CA$20,000 (CA$20M) a month, according to a news release.

The agreement went into effect June 12 and may be renewed monthly.

Tisdale is making a concerted effort to get the investment community to understand its value proposition and attract institutional investors to help fund extensive future drilling, Chief Executive Officer Alex Klenman said in an RCTV interview.

"I don't think you're going to find a better opportunity [than Tisdale] both in terms of the exploration upside but, also, development of the deposit," he said. "That's a very rare and unique proposition at a market cap like ours." Tisdale's current market cap is CA$1.95M, according to Reuters.

Also, to garner institutional funding, the company aims to get its market cap up to the CA$9−$10M range, which Klenman said will come with drilling, earning interest in the deposit, and a rebound in the uranium sector.

"Capital will come. Institutional support will be there. Our ability to make that earn-in is not in doubt. We will have an asset to back our valuation," the CEO said.

Targeting a Significant Discovery

British Columbia-based Tisdale Clean Energy is advancing the South Falcon East uranium project, just outside the southeast part of Saskatchewan's Athabasca Basin, as part of an earn-in agreement with Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE).

Nearby, big uranium companies are operating, including Cameco Corp. (CCO:TSX; CCJ:NYSE), Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT), NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT) and Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK), Technical Analyst Clive Maund highlighted in a June 11 report.*

"They would not be there without good reason, so the chances of [Tisdale] making a significant discovery are high," wrote Maund.

Today, 15−20% of the world's uranium supply comes from the Athabasca Basin, Bloomberg reported, adding, "It is the world's most prolific uranium jurisdiction and remains a key area for discovery."

"They would not be there without good reason, so the chances of [Tisdale] making a significant discovery are high," wrote Technical Analyst Clive Maund.

The 12,234-hectare South Falcon East property encompasses the near-surface Fraser Lakes Zone B deposit. It has a historical Inferred resource of about 7 million pounds (7 Mlb) of U3O8 at 0.03% and 5.3 Mlb of thorium dioxide at 0.023% within 10,354,926 tons using a U3O8 cutoff grade of 0.01%. The remaining ground offers "incredible exploration upside," Klenman noted.

Per its five-year earn-in agreement with Skyharbour, entered into in October 2022, Tisdale may acquire an initial 51% interest and earn up to 75% by issuing 1.1 million (1.1M) Tisdale shares, spending CA$10.5M on exploration at South Falcon East and paying CA$11.1M, reported Resource Stock Digest. Of this latter amount, CA$6.5M may be covered with Tisdale shares.

"We like the earn-in at this stage of our company's development because we know where we're going," Klenman said. "We can see the numbers, how much we have to spend to earn a majority interest in those pounds."

Currently, Tisdale is planning to complete a 1,500-meter drill program at South Falcon East to confirm results of historical drilling that showed existing mineralization and grades of 0.2−0.24%, Klenman said. So far, the results of the first two drills have come back, and they showed mineralization.

"The confirmation drilling should help in eventually making the historical resources current, with potential to expand the resource base if the results of extension and regional drilling are positive," Red Cloud Securities Analyst David Talbot wrote in a research report.

Demand Growing in Uranium Sector

The demand for uranium is increasing, according to the World Nuclear Association, and is projected to grow by 28% by 2030 and nearly double by 2040.

"In the face of soaring energy demands and the critical urgency to address climate change, many nations are pivoting towards nuclear power for dependable and eco-friendly energy production," Bloomberg wrote. "This nuclear renaissance has consequentially amplified the demand for uranium."

The uranium market has experienced a retracement this year, but the outlook for it remains strong, noted the Haywood Securities' Mining Team in a June 13 junior exploration report.  

Like Maund, Red Cloud's Talbot is bullish on Tisdale, too. In his most recent report on the uranium explorer, he maintained his Buy rating.

"The macro backdrop for uranium remains bullish, driven by rising global recommitments to nuclear energy," the analysts wrote. "We also look for strong uranium fundamentals to continue."

Uranium prices are the highest they have been in years, noted the Golden Opportunities newsletter.

"The long-term potential growth of the nuclear industry is already playing out in the spot price of yellowcake uranium," the June 13 report said.

The uranium price hit US$106 per pound (US$106/lb) in January and since, settled in the high US$80s/lb. Today it is US$86.90/lb.

Red Cloud Securities' uranium price deck has the uranium spot steadily rising over the next four years, a February report noted. The investment dealer forecasts it will reach US$120/lb by year-end 2024, US$135/lb by year-end 2025, US$150/lb by year-end 2026 and US$175/lb by year-end 2027.

All factors considered, Haywood said, "We believe that explorer and developer equities are finally poised to outperform."

Several Catalysts Ahead

Tisdale has a number of potential stock-moving events ahead. In the near term, it intends to complete the current drill program at South Falcon East, after which it will announce drill results when they are available.

The company plans subsequent, follow-up drilling to "facilitate expansion of the known Fraser Lake B deposit and to test multiple additional high-priority exploration targets at South Falcon East," indicated Klenman.

Eventually, Tisdale will drill stepout holes to determine the parameters of the deposit, now open in several directions.

Another catalyst that will happen down the line, Klenman said, is the company garnering institutional investors and funding.

Stock Remains a Buy

Tisdale has caught the attention of Maund, who, earlier this month, recommended it as a Strong Buy for all time horizons. In his report, he explained that though the stock has been declining in price since last spring, it is showing signs, on its one-and-two-year charts, that it is "set to reverse to the upside soon."

"It is even close to making new highs," he added.

Like Maund, Red Cloud's Talbot is bullish on Tisdale, too. In his most recent report on the uranium explorer, he maintained his Buy rating.

Ownership and Share Structure

Tisdale provided a breakdown of the company's ownership and share structure, where CEO Alex Klenman owns 5.04% of the company with 1,591,300 shares.

Planet Ventures Inc. owns approximately 12% of the company, with 3.88 million shares, while Skyharbour Resources owns approximately 3.5%, with 1.11 million.

Tisdale has 31.54M outstanding shares and 26.6M free float traded shares.

Over the past 52 weeks, the company has traded between CA$0.08 and CA$0.455 per share and has a market cap of CA%1.65 million.

Important Disclosures:

1. Tisdale Clean Energy Corp. and Skyharbour Resources Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Tisdale Clean Energy Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tisdale Clean Energy Corp. and Cameco Corp.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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* Disclosure for the quote from the Clive Maund article published on June 6, 2024

1. For the quoted article (published on June 6, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. 
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.