StockInterview.com- Friday started off as a quiet, pre-holiday trading day for most uranium miners on StockInterview.com’s Uranium HQ. After all, this was the beginning of a long weekend before Canada celebrated Victoria Day on Monday. But just before Noon, investors knew something was happening with Energy Metals Corporation.
By 2pm, shares had jumped to a daily high of C$16.72 – up by C$1.72/share for the day. The stock was halted by the Toronto Stock Exchange’s Market Regulation Services, after trading volume surpassed the three-month average trading volume by 300 percent.
Around the noon hour, a few other stocks jumped a bit higher. By day’s end, several other companies we closely follow had posted strong percentage increases: Ur-Energy (7.46%), Uranium One (7.66%), Strathmore Minerals (15.11%) and Uranerz Energy (19.49%).
At the end of the trading day, Energy Metals issued a news release announcing it ‘is in exclusive negotiations with respect to a potential sale of the company.’
In a February 16th article entitled “Junior Uranium Miners Reluctant To Be Acquired,” we posted remarks by Energy Metals vice president for strategic initiatives Farhad Abasov, who told us, “We are open to opportunities on the other side of the M and A that will enhance our shareholders’ value.â€Â
Quite a few speculations have been made as to the possible suitor. In early May, Raymond James mining analyst Bart Jaworski speculated Uranium One could intensify its U.S. push in the coming months. He considered Strathmore Minerals, Ur-Energy and Energy Metals ‘attractive takeout candidates.’ These were the same names we discussed with Uranium One chief executive Neal Froneman in July 2006.
