Tecton Corporation (TTNC.OB) is a mineral exploration and development company with a focus on acquiring and developing a high-quality portfolio of uranium properties. The company is based in the United States with a Swiss-Canadian management team and primarily mines uranium and vanadium property interests in the U.S. and Canada. Tecton has three main projects: Wapata Lake, Firefly, and Ace of Spades.
The Wapata Lake Project is located in the Athabasca Basin in northern Saskatchewan, which is the world’s largest producer of uranium. The Athabasca Basin is known as the “global hotspot” for high grade unconformity-related uranium deposits and contains more than 32 percent of the global uranium supply. Tecton has acquired 100-percent interest in exploration permits covering 633,192 in the Athabasca Basin.
Tecton’s Firefly Project is located in San Juan County, Utah, which is known as one of the most productive uranium regions in the U.S. The area’s total uranium production, from the 1940’s through the 1980’s, is more than 150 million pounds.
Overall, Tecton has acquired property interests covering 633,192 acres in Canada and 4,000 acres in Utah. The company anticipates expanding its portfolio in Utah as well as considering new projects in Eastern Europe.
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In early afternoon trading, Tecton Corporation is up over 18% and trading at $0.98, with more than 12 times average volume. This comes after BeaconEquity.com released a detailed report before the opening bell this morning. In the report, Analyst Victor Sula, Ph.D. rated the company a “Speculative Buy” and set a price target of $2.50.
Tecton is a US-based exploration company with a Swiss and Canadian management team focused on the development of a portfolio of high quality uranium properties in the United States and Canada. Tecton’s corporate strategy is to acquire advanced-stage uranium properties that have previously produced or have been the subject of prior work programs, but the company does not rule out the possibility of selectively acquiring early-stage properties should they possess significant geologic merit.
The company currently has three projects in North America: Wapata Lake in the Athabasca Basin in Canada; the Firefly Project in San Juan County, Utah; and the Ace of Spades in Canada. In addition to these three projects, they are also in negotiations to acquire over 700,000 acres in Labrador, Canada and are currently looking at properties in both Patagonia and Argentina. The quality of these current projects and the management of the company are the reasons why the analyst at Beacon Equity gave the high target price.
In the research report, Mr. Sula writes, “Based on the area’s adjacent reserves, we believe the company has a good chance of recovering economically viable uranium resources through its planned drilling program. Assuming even a modest 20 percent chance of successful uranium finds and potential reserves comparable to adjacent properties, we estimate TTNC’s uranium resource potential at approximately 20 million lbs. At recent $75 per pound market prices, a 20 million lbs uranium resource would be valued at approximately $1.5 billion.”
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When the average person thinks about nuclear power, those thoughts are often bathed in an extraordinarily negative light. While uranium, the most common source from which nuclear energy is derived, does have some truly sinister applications, it can also be used for good. Uranium powers many of the ships and submarines used for the protection of our borders, as well as safeguarding our interests overseas. In addition, nuclear power plants currently generate 16% of the world’s electricity, without the harmful emissions caused by their coal-powered counterparts.
Tecton Corporation has committed itself to never providing uranium under any circumstance in which it may potentially be used for weapons production. From an ethical standpoint, this puts it far beyond many corporations that make no such vow.
Investors in the Swiss-managed company were happy to receive word this past Wednesday (April 2nd) that Tecton has officially entered into an option agreement to acquire more than 630,000 acres in the Athabasca region of Northern Saskatchewan, Canada. This territory is largely considered to be the world’s most prolific uranium region, comprising a third of the global supply. Not only are Athabasca’s deposits plentiful, but they contain some of the highest-grade uranium on the planet.
With several countries, including the U.S., committed to nuclear power expansion to offset the pollutants generated by burning fossil fuels, such an acquisition could have an extremely positive effect on Tecton Corporation’s project portfolio, and subsequently, its share value.
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