Sprott Asset Management LP has entered into a definitive agreement with North Shore Indices, Inc. to acquire an exclusive license to use the North Shore Global Uranium Mining Index, the performance of which the North Shore Global Uranium Mining ETF (URNM) tracks.
This agreement is subject to approval by both the Board of Trustees and the shareholders of URNM. Once approval is granted, URNM will be reorganized to create the Sprott Uranium Miners ETF, which will be advised by Sprott Asset Management and sub-advised by ALPS Advisors, Inc. Assuming the transaction is approved by the Board of Trustees of the Trust and the shareholders of URNM, the reorganization is expected to close in the first quarter of 2022.
“We believe we are in the early stages of a uranium bull market and URNM is a perfect complement to the Sprott Physical Uranium Trust (U.U), which is the world’s largest physical uranium fund,” said John Ciampaglia, CEO of Sprott Asset Management. “URNM is the only US-listed pure-play uranium equities ETF and we look forward to providing investors with two compelling options to invest in the sector.”
Sprott’s current suite of precious metals ETFs includes both physical trusts in gold and silver through the Sprott Physical Gold Trust (PHYS) and the Sprott Physical Silver Trust (PSLV), and mining equities through the the Sprott Gold Miners ETF (SGDM) and the Sprott Junior Gold Miners ETF (SGDJ).
Uranium has garnered increased interest as the world contends with the dual challenges of pivoting to more renewable energy sources and managing an energy crisis. Nuclear power combines both low emissions with incredible energy output, making uranium a potentially crucial material for the near future. Solar, wind, and other renewable energy sources currently don’t have the capacity to handle the demands of the electrical grid, and fossil fuels emissions are the primary drivers of climate change.
In an interview with Financial Times, Light Sky founder Ben Melkman said, “the growing focus on ‘green energy’ at a political level and the growing demand for [sustainable] assets in the investment community should turn uranium into one of the most asymmetric trades for the coming years.”
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