Thursday, June 21, 2007

Strathmore Minerals (STM) AGM - June 19/07

Strathmore Minerals Corp (STM) AGM – June 19/07

Metropolitan Hotel
Davinder Randhawa, CEO/Chairman
David Miller, President /COO
Jody Dahrouge, Fission Energy

This was the Annual and Special Meeting to vote on the arrangement involving Strathmore and Fission Energy Corp, where if approved, one old STM share could be exchanged for one new STM share and 1/3 shares of Fission Energy.

Before the formal meeting is over, there is a dissenting shareholder who doesn’t like the 14.5% Fission stock option plan. He asked why it isn’t the normal rolling 10% stock option plan. He went on quite a bit and made a lot of assumptions about management making millions with this plan, which management refuted. They say the plan was structured that way for flexibility purposes. They will likely increase their workforce from 20 to 100 employees. They have also been poached by other companies. When you go from 3 uranium companies to 500, that’s bound to happen. A starting salary for a young geologist can be as high as $250,000. However, the discussion also forced Mr Randhawa to shed light on future plans.

There will likely be a $25-50M funding so they can bring in some quality people.
A flow-thru is likely to take place with Fission.

Fission will hold all the Canadian assets plus Macusani in Peru, representing a blue sky opportunity. By making this arrangement, it will unlock hidden shareholder value, allow for flow-thru financing, which would not be dilutive to the US development assets. Right now, they have the most land in the Athabaska Basin. They also have Dieter Lake in Quebec – 24 M lbs and increasing, 43-101.

STM will hold all the US uranium assets and what assets they are: Roca Honda, Gas Hills, Church Rock, Nose Rock plus lots of non-core assets, which they will try to find JV partners. (Already started, see latest News Release re Nu-Mex). STM will also apply for an Amex listing.

Roca Honda is in the permitting stage, cash operating cost will be about $20 US/lb. Expect a news release in July re a JV with a foreign entity.

Gas Hills in Wyoming, where permitting is faster, is part of the 2nd largest uranium district in the US. Shallow open pit operation will result in quick production. The amount of dirt dug out there was more than that at the Panama Canal. They mentioned the Abandon Mine Lands program, in which some mining companies pay into. So it is likely the US government will pay them to move the dirt back in.

Nose Rock – 20M lbs, mill is on STM property, recent NR about JV.

A word about STM – Sprott owns 19.9%. They have experience in ISR/open pit and underground.

A word about Fission – 24 M shares o/s, Davy Lake, Waterbury, South Shore, Midwest in the Athabaska, Dieter Lake in Quebec, Sprott owns 19.9%, 200 man-years experience plus flow-thru opportunities.

They are looking closer at the Midwest area, ever since 2 months ago, another company found 20% grade uranium.

They also thanked Sprott, Raymond James and Coremark(?), presumably their financing guys.

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