Though seller United Nuclear Corp. of Gallup sold the actual land to Hydro Resources Inc. during the 1980s, the company continued to retain the royalty interests in the closed parcels. The parcels, Section 8, Section 17 and Marcos are in the Church Rock area of McKinley County.
However, "the uranium market tanked, badly, to where uranium wasn't being produced in the US for many years," comments Andrew Brodkey, managing director, international mining and metals with CB Richard Ellis Inc.'s Tucson office, who represented United Nuclear Corp. But recently, the market has improved. "It's made a lot of people realize the value of uranium," Brodkey says.
He tells GlobeSt.com that United Nuclear decided not to retain the parcels, however. "We had a targeted marketing process and took it to 15 or 16 companies," he says, adding that the offer generated a great deal of interest. Toronto-based Laramide Resources, Ltd., which acquires, explores and develops mineral properties worldwide, ended up making the best offer.
The Church Rock mines have been a source of controversy for United Nuclear and the nearby Navajo Nation, which fears the impact of uranium mining on livestock and residents in the nearby reservations. Last fall, the Environmental Protection Agency and United Nuclear Corp. reached an agreement to study the Church Rock site for any persistent surface contamination.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.