The Okapi Resources Ltd (ASX: OKR) share price is shooting the lights out after releasing some exciting news. The ASX mining share has gained 43.33% in value since the market open yesterday. The Okapi share price is currently up 16% at 42 cents after touching a high of 43.5 cents in early trade.
ASX investors responded big-time to Okapi's announcement yesterday about a transformative acquisition in the United States that will make it "a significant player" in the US uranium market.
The company also updated ASX investors on Monday regarding approval for a separate drilling program.
All this amid news the uranium price reached its highest point in more than a decade overnight.
In short, it's been a pretty major week for the nano-cap miner. Let's look at the detail.
How this ASX mining share's big week began
The first bit of news out of Okapi this week was an announcement on Monday that it has received approval from authorities in Moab, Utah, in the United States to commence an exploration drilling program at the high-grade Rattler Uranium Project.
Okapi will drill 100 shallow holes to test the extent and nature of mineralisation confirmed by recent rock sample results. The project comprises 98 unpatented federal mining claims. It includes the historical Rattlesnake open-pit mine, which operated from 1948 to 1954.
The project is located about 85km from the only operating conventional uranium mill in the US. That's the White Mesa Uranium/Vanadium mill owned by Energy Fuels Inc (NYSEAMERICAN: UUUU).
Okapi has an option to acquire 100% of the Rattler Project. The company describes it as "a near term, low-capital development opportunity". Drilling is expected to start in Q3 this year.
The ASX mining share's price was virtually unmoved by the news. This is possibly because investors had already responded strongly on 10 March when Okapi released rock sample results from the site. That news sent the Okapi share price 17% higher in one day.
On Tuesday, Okapi announced a trading halt before the market open, pending an announcement.
What happened next for Okapi?
The ASX mining share resumed trading on Thursday after revealing a major acquisition in Colorado. In a statement, Okapi said the deal would turn it "into a significant player in the USA uranium market".
Okapi announced a binding agreement to buy an option over a 51% stake in the shallow, high-grade Hansen Uranium Deposit. It's situated in one of the most prolific uranium districts in the US – the Tallahassee Creek Uranium District.
The deal lifts Okapi's JORC Resource at the Tallahassee Project by 81% to 49.8 million pounds of U3O8. It also increases the grade by 10% to 540ppm U3O8.
In its statement, Okapi said it was "highly accretive" for shareholders with 22.2 million pounds U3O8 at 610ppm U3O8 "for the modest upfront cost of US$500,000 which is fully funded by existing cash reserves". Okapi also released an investor presentation on the deal.
The news thrilled ASX investors, who bid up the ASX mining share from 30 cents to 36 cents — or 20% yesterday. And it looks like the market enthusiasm is continuing today.
About Okapi Resources
Okapi has a portfolio of advanced, high-grade uranium assets in the US and Canada. Its Canadian assets are located in the world's premier uranium district, the Athabasca Basin. The basin is home to the world's largest and highest-grade uranium mines.
Okapi says its "clear strategy is to become a new leader in North American carbon-free nuclear energy".
The ASX mining share has a market capitalisation of $42.15 million.
