The Okapi Resources Ltd (ASX: OKR) share price has soared since exiting a trading halt entered at its request last Thursday.
Okapi leapt 48% higher during yesterday’s trade. Today, there looks to be some profit taking underway with Okapi Resources’ share price down 6.25% in early afternoon trade, leaving it up 36% for the week.
We take a look at the ASX resource explorer’s uranium announcement that’s stirring investor interest.
What uranium announcement did Okapi make?
The Okapi Resources share price is up 36% this week after the company reported it had acquired a portfolio of high-grade uranium projects in the United States.
The binding agreement will see it acquire 100% of the shares and options in Tallahassee Resources. The company said the newly acquired assets include “a strategic position” in the Tallahassee Creek Uranium District in the US state of Colorado, well-known for its historic uranium production.
According to a 2004 JORC Mineral Resource estimate, the Tallahassee Uranium Project is estimated to contain 26 million pounds of U3-O8 at a grade of 540 ppm U3-O8. Okapi notes there is significant exploration upside at the project.
Okapi Resources’ share price also likely got a lift from its announcement that Tallahassee holds an option to acquire 100% of the high-grade Rattler Uranium Project in the US state of Utah. It said Rattler is just 85 kilometres from the only operating conventional uranium mill in the US, the White Mesa Uranium Mill.
The acquisition was backed by former executives of Black Range Minerals which had previously owned the Tallahassee Uranium Project.
Commenting on the acquisition, Okapi’s executive director David Nour said:
This is a transformational opportunity for Okapi to become one of the most prominent uranium developers in the world. Through this acquisition, Okapi is perfectly placed to capitalise on the strengthening uranium market.
Nour welcomed former Black Range exploration manager Ben Vallerine who joins Okapi’s Board as non-executive technical director.
Okapi noted it remains well-funded with roughly $6.3 million in cash and cash equivalents upon completion of placement. It expects to commence “high-impact work programs” in the second half of 2021.
Okapi share price snapshot
Factoring in the big lift it received this week, the Okapi Resources share price is now up 62% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) has gained 25% over that same time.
Year-to-date, the Okapi Resources share price is up 53%.
The post Why the Okapi Resources (ASX:OKR) share price is up 36% this week appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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