Uranium Co. With 'Ambitious' Exploration Program Issues Shares for Earn-in

1. Terra Clean Energy Corp. and Skyharbour Resources are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp. and Cameco Corp.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) issued 2,694,335 common shares to Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) according to the option agreement of 2022 between the two companies, allowing Terra to earn up to a 75% interest in Skyharbour's South Falcon East uranium project just outside Saskatchewan's Athabasca Basin, noted a news release.

In other news, pursuant to its omnibus incentive plan, Terra Clean Energy awarded 300,000 restricted share units (RSUs) to a consultant of the company. Each RSU entitles the holder to receive one common share of the company on vesting. The RSUs vest exactly one year from the date they were granted.

Advancing Exploration Project

Based in Vancouver, British Columbia, Terra Clean Energy is a uranium explorer and developer. The company is currently developing the South Falcon East uranium project in accordance with its earn-in agreement with the owner, Skyharbour. Terra may earn a 51% interest in South Falcon East by 2027 and a 75% stake by 2029. This arrangement affords the company a pathway to an asset-backed valuation, noted Terra's Investor Presentation.

South Falcon East spans about 12,234 hectares outside of the Athabasca Basin's southeast portion. The Way Lake Conductor, a geological feature ideal for hosting high-grade uranium mineralization, runs through the project area. Located 55 kilometers (55 km) east of Cameco Corp. (CCO:TSX; CCJ:NYSE) and Orano SA's (AREB:PA) Key Lake mine, South Falcon East's many high-profile neighbors include Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT), NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT), Uranium Energy Corp. (UEC:NYSE.American), Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTNTF:OTCMKTS) and Skyharbour. Infrastructure, including all-weather highways and grid power, is nearby.

The project's Fraser Lakes B deposit has geological and geochemical features that are similar to those of the high-grade, basement-hosted deposits in the Athabasca, such as Eagle Point, Millennium, P-Patch and Roughrider, the company said. The deposit's existing Inferred historical resource is 6.96 million pounds (6.96 Mlb) of an average grade of 0.03% U3O8 plus 5.34 Mlb of an average grade of 0.023% thorium dioxide, in 10.35 tons using a U3O8 cutoff grade of 0.01%.

During the most recent, winter 2025, drill program at South Falcon East, Terra encountered wider intervals of mineralization than it did in 2024's winter campaign, HoldCo Markets pointed out in an April 30 research report. Also, year over year, it hit more consistent and higher-grade spikes, one being 0.16% eU308 encountered in hole SF0065, for example.

Favorable Fundamentals

Around the world, the transition to clean energy and decarbonization goals have sparked renewed interest in nuclear power, leading to surging demand. Yet global uranium supply is constrained and insufficient, experts say. Factors influencing the market include supply security, trade policies, geopolitical conflicts and uncertainty surrounding some of them.

"As global tensions increase and countries seek to reduce dependency on potentially adversarial nations for critical materials, uranium from stable, allied jurisdictions gains strategic value. This trend favors producers in countries like Canada, Australia and the United States." —  F3 Uranium CEO Dev Randhawa told Crux Investor.

"As global tensions increase and countries seek to reduce dependency on potentially adversarial nations for critical materials, uranium from stable, allied jurisdictions gains strategic value," F3 Uranium CEO Dev Randhawa told Crux Investor. "This trend favors producers in countries like Canada, Australia and the United States."

Several countries, including the U.S., the United Kingdom and South Korea, have announced plans to expand nuclear energy capacity by 2050, reported The Astana Times on June 10. Countries phasing out their nuclear programs are reversing course or considering doing so, such as Germany and Spain, a June 10 Discovery Alert article noted. Other countries are exploring new builds and/or extending the life span of existing nuclear power plants.

New and high demand is coming from technology sectors needing reliable, carbon-free, around-the-clock power to run their data centers and artificial intelligence systems. Tech giants, including Meta, Amazon, Microsoft and Google, continue to invest in nuclear energy to meet this need.

Global investment in nuclear energy has grown 50% each year since 2020, and nuclear capacity is expected to increase 130% by 2050, The Astana Times reported.

While demand for uranium is soaring, surging, global production of the metal is growing. Production is expected to expand 2.6% this year to 62,200 tons, according to Research and Markets. While this is positive, this amount is insufficient to combat the world's years-long uranium supply deficit. Current global production capacity is materially below reactor requirements by 30–40 Mlb annually, Discovery Alert indicated.

Existing and new supply continue to be hampered by various factors. These are suspensions and production halts at major mines such as Kazakhstan's Inkai, jurisdictional challenges, limited new mine development, long timelines for permitting, financing and construction and more. Uranium prices remain below the US$80 per pound (US$80/lb) threshold for economically viable projects, noted Fundamental Research Corp. analysts. (The uranium spot price at the last market close was US$70.05/lb.)

"This underlying reality creates a foundation for continued price appreciation regardless of short-term uranium volatility insights," wrote Discovery Alert.

Investing in uranium should be done with a long-term view and knowledge that prices can be volatile, Crux Investor warned.

"Companies with quality assets in stable jurisdictions, strong balance sheets and demonstrated operational capabilities offer the most attractive risk-reward profiles in this complex but strategically important sector," Crux added.

The Catalyst: Summer Drilling

In mid-June Terra Clean Energy will embark on its "most ambitious" exploration program yet at South Falcon East, described HoldCo Markets. The CA$2 million (CA$2M), four- to five-week summer campaign will consist of seven to 10 diamond drill holes over 2,500 meters (2,500m), exceeding the breadth of the previous program by about 500m.

The target area is located about 120–150m north of four holes drilled in winter (SF0063, SF0065, SF0066 and SF0067) and slightly north of the Way Lake Conductor. Terra interprets this area as the intersection of three geological features: a north to northwest-trending brittle structure, a north-dipping structure with strong clay alteration and mineralized pegmatites, with hydrothermal hematite alteration hosted in graphitic pelitic gneiss.

"This puts many of the indicators identified as being key components for higher-grade uranium mineralization all in the same location," the company said.

Subsequently, Terra plans a resource estimate update to include all drilling done in 2024 and 2025, reported HoldCo. Completion of this is anticipated in Q4/25.

230% Uplift Suggested

HoldCo Markets wrote that in light of Terra's robust 2025 drill program, "the risk remains on the upside for a material valuation rerate" of the uranium explorer. HoldCo also noted its investment thesis on it still stands.

"With Terra Clean Energy we see a microcap valuation leading to exposure to a pre-established, 6.9 Mlb Inferred shallow uranium resource situated near the needed infrastructure required for mining."

HoldCo has a target price on Terra implying a 230% return.

Ownership and Share Structure

According to Refinitiv, four strategic entities own 3.52% of Terra Clean Energy. They are Planet Ventures Inc. with 2.02%, Terra Director Alex Klenman with 1.29%, Terra Chief Financial Officer Brian Shine with 0.14% and Mark Ferguson with 0.07%.

The rest is in retail. There are no institutional investors at this time.

Terra Clean Energy has 36.33 million (36.33M) outstanding shares and 35.06M free float traded shares. Its market cap is CA$2.65M. Its 52-week range is CA$0.095–0.44 per share.