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."

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 carrying out 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.  

"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 4.43% of the company with 1.396 million 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.