In early afternoon trading, Tecton Corporation is up over 18% and trading at $0.98, with more than 12 times average volume. This comes after BeaconEquity.com released a detailed report before the opening bell this morning. In the report, Analyst Victor Sula, Ph.D. rated the company a “Speculative Buy” and set a price target of $2.50.
Tecton is a US-based exploration company with a Swiss and Canadian management team focused on the development of a portfolio of high quality uranium properties in the United States and Canada. Tecton’s corporate strategy is to acquire advanced-stage uranium properties that have previously produced or have been the subject of prior work programs, but the company does not rule out the possibility of selectively acquiring early-stage properties should they possess significant geologic merit.
The company currently has three projects in North America: Wapata Lake in the Athabasca Basin in Canada; the Firefly Project in San Juan County, Utah; and the Ace of Spades in Canada. In addition to these three projects, they are also in negotiations to acquire over 700,000 acres in Labrador, Canada and are currently looking at properties in both Patagonia and Argentina. The quality of these current projects and the management of the company are the reasons why the analyst at Beacon Equity gave the high target price.
In the research report, Mr. Sula writes, “Based on the area’s adjacent reserves, we believe the company has a good chance of recovering economically viable uranium resources through its planned drilling program. Assuming even a modest 20 percent chance of successful uranium finds and potential reserves comparable to adjacent properties, we estimate TTNC’s uranium resource potential at approximately 20 million lbs. At recent $75 per pound market prices, a 20 million lbs uranium resource would be valued at approximately $1.5 billion.”
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