Is This A Fair Deal

Part of an article written (link below)

http://seekingalpha.com/article/323...a-energy-to-create-a-stronger-uranium-company


Is the deal fair? Should you accept the current terms on the table?

Let's see whether or not this agreement makes sense. At first sight, it actually does. Uranium Resources gets its hand on an ISR development-ready project in Turkey. Earlier this year, Anatolia Energy released the results of a pre-feasibility study on its Temrezli project in Turkey, outlining a potential mine plan to produce an average of 825,000 pounds of uranium per year at a production cost of less than $20/lbs. So even though the current uranium price is currently trading relatively low at less than $40/lbs, this project would actually make money, contrary to so many other (hard rock) uranium projects on this world.
(click to enlarge)
Source: merger presentation
The pre-tax NPV8% of the Temrezli project using an uranium price of $50/lbs (see previous image) (which is roughly the current long term contract price) is in excess of $100M, so there's definitely some value in Turkey. On top of that, Uranium Resources would be able to use the expertise and experience it gains from operating the Temrezli ISR project to its own ISR projects in the USA if it would ever get the go-ahead on those.
(click to enlarge)
Source: merger presentation
At first sight, the deal looks pretty fair for the Anatolia shareholders. The premium is pretty decent, and the combined entity will have more cash on hand [as Uranium Resources is also selling another uranium property in New Mexico to Energy Fuels (OTC:UUUU) for $2.5M in cash, $375,000 in cash and a 4% gross production royalty on the assets that are currently being developed by Peninsula Energy].
The Anatolia and Uranium Resources will obviously have to vote on this deal, and in order to go ahead, Anatolia needs to secure at least 75% of the votes in favor of the transaction, (which shouldn't be too difficult as some major shareholders have already confirmed they would vote in favor of the transaction) whilst a normal majority is sufficient for the Uranium Resources vote. Both companies expect to close the deal by the end of September, and upon completion, the Anatolia shareholders will own approximately 40% of the consolidated company.
Investment thesis

The deal is pretty straightforward and by structuring it as a share-swap agreement, it actually is a win-win situation. The MergeCo will have access to more capital markets and thus more flexibility to get financing for the Temrezli project which is the company's flagship project.
I think this deal will go through (unless another company will make a better offer for Anatolia's assets), and both the Uranium Resources and Anatolia Energy shareholders should vote in favor of this agreement as it's definitely in their best interest in the longer term.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

The only few questions i have is

are the URRE team capable.

Why have they not developed their own rescources

What happens if their Sp keeps deteriorating up the the time of the deal?

Are they just drawing wages lets face it the charts are not exactly awe inspiring are they

have not gone into this fully not been into this for to long but looking at their chart doesnt exactly fill one full of confidence does it

After all their Sp was once $150.00 Hmm



Above from 2008 $150.00




Above from 2011 $40.00

Above last two years $5.50

Even after Announcing the deal with Anatolia they are still trending at their nearly all time Lows

Got to be worth a phone call to Paul i would think just to get his perspective on the matter .

I got into this on a long term basis dont know much about uranium but i like the AEK story and uranium going forward and the AEK chart has been trending nicely in an upward movement lets hope it stays that way.



GO AEK