Sprott Physical Uranium Trust

Description

"Sprott Physical Uranium Trust is a publicly listed physical commodity fund that invests in Uranium assets in the form of U3O8. It is a closed-end trust managed by Sprott Asset Management.

It is reportedly the world’s largest physical uranium trust that engages in liquid and convenient ways to acquire physical uranium.

Sprott Asset Management is a subsidiary of Sprott Inc, a holding company with assets in physical bullion trusts, managed equities, mining ETFs, private equity and debt strategies. The parent company also invests in real assets and precious metals.

The holding company is composed of various separate entities, including:

• Sprott Asset Management LP: It is registered as an investment fund manager, portfolio manager and investment advisor with operations across Canada, including British Columbia, Manitoba, Alberta, Nova Scotia, Ontario, New Brunswick, Saskatchewan and others.
• Sprott Capital Partners LP: It is a Canada-based investment dealer company.
• Sprott Resource Lending Corp: The subsidiary is responsible for providing solutions to mining companies.
• Sprott U.S. Holdings, Inc: The company consists of U.S. registered advisory and dealer organizations.

Following an arrangement between Uranium Participation Corp and Sprott Asset Management, the physical uranium trust was created on July 19, 2021. The newly formed trust has listed its units under the symbol ‘U.UN’ on the Toronto Stock Exchange.

In April 2021, Sprott Asset Management LP signed a definitive agreement wherein Uranium Participation’s shareholders would become unitholders of the newly formed physical uranium trust upon the close of the transaction. In addition, Uranium Participation will now operate as a subsidiary of the acquirer.

WMC Energy, an industrial asset development firm, is the technical advisor for the newly formed entity.

The company claims that the trust was formed to improve its trading liquidity and expand the asset base for the physical uranium. Further, the deal offers Sprott Inc and its affiliates a significant strategic base in the clean energy metals sector.

Sprott Inc is believed to have added approximately US$600 million to its total asset under management with this reorganization. In addition, the company is also expected to seek a listing in the United States in the near future."