Uranium Royalty to acquire Sweetwater Royalties in US$1.9B deal adding US$74M EBITDA
Uranium Royalty Corp. will combine with sellers holding 92% of Sweetwater Royalties in a deal valuing Sweetwater at US$1.9 billion enterprise value and US$1.1 billion equity. Pro forma New URC will list on Nasdaq, hold 5.35 million acres of U.S. land and add EBITDA of US$74 million from Sweetwater royalties.
1. Transaction Overview
Uranium Royalty Corp. has entered an arrangement to combine with sellers owning 92% of Sweetwater Royalties, implying a US$1.9 billion enterprise valuation and US$1.1 billion equity value. On completion, New URC will list on Nasdaq and sellers will receive US$330 million in cash plus US$813 million in New URC shares at US$3.64 per share.
2. Asset and Cash Flow Profile
The transaction adds a cash-flowing royalty portfolio with approximately 50 years of reserves and average adjusted EBITDA of US$74 million annually. Pro forma New URC will control around 5.35 million acres of U.S. land, including 850,000 acres of surface rights and 4.5 million acres of mineral rights, boosting production optionality.
3. Strategic Implications and Ownership Structure
The combination positions New URC as the largest U.S. non-precious metals royalty company, with accretion to net asset value and earnings per share. Post-closing, Orion and Ontario Teachers' are expected to hold about 43% and 16% of pro forma shares, providing significant institutional support.