Special Edition - Q&A with Generation Uranium

This interview has been brought to you on behalf of Generation Uranium.

As promised, we have a special edition of Funding Secured this week featuring an exclusive Q&A with one of the most exciting new uranium exploration companies in Canada: Generation Uranium (TSX-V: GEN) (OTCQB:GENRF)

Generation Uranium has successfully raised multiple funding rounds from both strategic and retail investors. The company has acquired over 140 square kilometers of highly prospective uranium land adjacent to Atha Energy, the largest uranium exploration company in the world, which we featured in an interview on May 16th.

Uranium is one of our favorite sectors within the metals and mining industry. Demand is projected to surge significantly over the next 12-18 months, driven by the burgeoning AI market's increasing energy needs, as highlighted here:

“The AI boom has driven a surge in demand for data center capacity to handle AI workloads and store the vast amounts of data they require. Data centers are energy-intensive, and AI applications consume even more energy than traditional computing.“

See what we learned below.

This interview has been edited for length and clarity.

Chris Huggins has over 25 years of experience in mining technology and capital equipment, holding various roles in management, business development, and operations. His early career began as a regional exploration geologist for Homestake Mining around Eskay Creek, Snip Mine, Stewart, and Deese Lake camps. With a successful track record from exploration geologist to CEO, Chris, can you tell us more about your career path and successes?

You bet. It's been quite an eclectic career path. I started in geology worked through that period for several years. I experienced the gold price collapse in 2000 when it dropped to about $200 an ounce, which seems astonishing at today's rates. I then pivoted to technology companies for a decade, doing sales, and later moved to equipment manufacturing and mining equipment companies for another decade.

In the past four or five years, I've returned to the junior mining space. I've worked with and developed companies like Exploits Discovery, which remains a significant player next to Newfound Gold in Newfoundland. Recently, I’ve been with C2C Metals, transitioning them from gold to uranium, creating over $20 million in shareholder value. Now, I'm excited to be here with Generation, in an extraordinary district and market, poised for success.

That sounds great. Before we dive into the company details, let's talk funding. GEN recently raised $1.25 million. Who invested, and what are the intended use of the proceeds?

Absolutely. Our team focused on finding key people committed to a long-term project and working in this area. Canaccord was a significant participant, along with a uranium fund out of New York and Toronto. Having such a tight raise and a limited number of shares out gives us an extraordinary ability to manage our growth and develop the company effectively.

Controlling your capital structure is crucial. You have to guard it closely. Let's touch on the uranium market. Why do you believe now is the time to launch a uranium company?

I'm extraordinarily bullish on uranium and green metals. Over the past year, working with Bill Sheriff at Encore Energy, I've seen the positioning of the market and the global supply chain constraints. The pivot towards green and nuclear energy is a significant trend.

Nuclear energy is finally seen as a viable source for the base-level energy we need to move our society forward. Moving away from coal and gas is crucial, and uranium is an extraordinary energy source. The tight supply and demand dynamics present tremendous growth opportunities, especially here in Canada, next to companies like Atha.

The uranium market is indeed heating up, especially with recent IPOs like Sam Altman's Oklo and NanoNuclear. The whole market seems to be booming for uranium. Let's talk about Generation Uranium. You recently rebranded from Generation Gold, signaling a strategic pivot. Your main property, the Yath project, is adjacent to Latitude Uranium's Angilak project, which contains 43 million pounds of uranium and Latitude was acquired by Atha Energy. What interests you most about this project?

Having a well-funded neighbor is extraordinary, but our project is exciting on its own. Previous operators spent over $5 million on exploration but barely scratched the surface, with much of the drilling too shallow. We plan to re-evaluate the property. The new claims bring us within 3 km of Angilak and Atha. There's great potential for additional geophysics, groundwork, seismic studies, and a maiden drilling program. Samples from our property regularly show 1-10% uranium. With the significant work at Angilak and our own promising data, we're excited about the opportunity to develop value for shareholders.

We feel like you’re going to have to wear hazmat suits with those surface grades.

Not quite, but we're really excited. The grades are exceptional. The opportunity, the size of the property in and of itself gives us so many opportunities for discovery.

It seems you got it at a good price and recently expanded by 45% with the Yellow Frog and Pink Toad Uranium projects, which have amusing names. These projects are on the same Angilak trend. Is the plan to keep expanding land, start soil sampling, and then begin drilling?

I can't comment on future land expansion as we're somewhat limited due to the nature of being a public company, but the land we have is world-class. We're adjacent to Atha's impressive work, and despite significant past work, we believe an untested unconformity exists based on geophysics. We're very excited to get on the ground and start working.

Can you share more about your plans for getting to work? Are there summer drill programs coming up, or what are the next steps?

Absolutely. We're working towards our maiden drill program. We need to complete groundwork, secure permits, and collaborate with local communities and governments. We plan to start drilling within six to twelve months to test the high-grade unconformity uranium deposit theory. Our next steps involve expanding the resource. With neighboring high-grade uranium deposits and our 100% owned land, the potential for Generation Uranium in the next three to five years is immense.

Great, it sounds like you're gearing up for full steam ahead in the next six to twelve months with drilling. Everything is 100% owned, which is fantastic. You mentioned a three to five-year timeline. With one of the most well-funded uranium exploration companies as your neighbor, what's your plan for the next three to five years? Where do you want to take this?

Our immediate focus is on making a discovery and proving our theory. We need success on the ground to validate the potential of our over 100 square kilometer area, which shows promising samples throughout. There could be multiple discoveries and resources if multiple unconformities exist. We'll start testing key areas, and a successful discovery will help us raise funds and expand our search across the property.

Exactly. It's all about finding, developing, and either selling the resource or taking it into production.

Absolutely. When you have a 124 square kilometer property, that's a lot of ground. Access can be challenging in this part of the world. But again, Atha has made significant investments in the area and we're hoping that there's an opportunity for us to engage with some of that and help lower some of our costs and make exploration a lot more economic.

Understood. Let's discuss your share structure before we wrap up. My audience values this information. You mentioned a tight float with 24.7 million shares outstanding. Can you elaborate on your capital structure and why it bodes well for success?

Compared to our peers, our number of shares is quite small. We're currently trading at a market cap of nine or ten million, which is still tens of millions away from our closest peers. This tight float allows for rapid growth. In our private placement, we chose investors who are excited about the project and believe in the market. Setting warrants at $0.45 helps limit dilution, giving retail investors confidence. This warrant price provides the necessary capital for drilling. With strong shareholders and market performance, we aim to avoid returning to the market, positioning us for strength.

It's great to have a built-in financing mechanism. If your stock hits $0.70 or $0.80, you can pull in some warrants. How many warrants are outstanding, and how much money would that bring in?

It would be probably north of $3 million that we'd be able to bring in.

Nice, that certainly helps!

100%. And again, with the shareholders we have, they're fantastic. They're long-term shareholders, very much engaged and here for the success of the company, and we're excited to have them here to support us.

Thank you for joining us today Chris. You can learn more about Generation Uranium by searching their stock tickers TSX-V: GEN / OTCQB: GENRF or by visiting their website at www.generationuranium.com

Disclaimer: This special edition of Funding Secured has been sponsored by Generation Uranium. Please refer to the disclaimer and disclosure at the bottom of this email. We are not a securities dealer, broker, investment adviser, or financial adviser, and the information provided in this article should not be relied upon as investment advice. From time to time, we may be compensated by companies mentioned in this article, and we may trade in shares of their securities. We have been compensated USD$6,000 for this article by Market Jar Media Inc. If you are seeking personalized investment advice, I encourage you to contact a qualified and registered broker, investment adviser, or financial professional. Please do not make any investment decisions based solely on the information provided here. All content is for informational purposes only and should not be construed as an offer or recommendation to buy or sell any securities. The securities issued by the companies I may discuss could carry high risks, and if you choose to invest, you may lose your entire investment. I recommend that readers do their own due diligence, including reviewing publicly available company filings such as SEDAR or SEC filings, and consult with a licensed financial professional before making any investment. While I make every effort to ensure the accuracy of the information presented, I cannot guarantee that it is free from errors or omissions.