Uranium Royalty Corp. sets shareholder vote on $1.14B Sweetwater deal

Uranium Royalty Corp. (NASDAQ: UROY) has filed and mailed its management information circular ahead of a special shareholder meeting scheduled for July 20, 2026, in Vancouver, British Columbia, where shareholders will vote on a proposed plan of arrangement with entities affiliated with Orion Resource Partners and HRG Metals LP, a subsidiary of the Ontario Teachers' Pension Plan, collectively referred to as the Sweetwater Investors.

Under the arrangement, the Sweetwater Investors would contribute their approximately 92% interest in entities holding trona royalty assets and landholdings in Wyoming, Utah, and Colorado in exchange for aggregate consideration of approximately US$1.14 billion, payable in a combination of approximately US$330 million in cash and 223,252,749 shares of a newly formed parent company, New URC, at a deemed value of US$3.64 per share.

Each existing URC shareholder would receive one New URC share for each URC share held. Eligible Canadian shareholders may elect to receive exchangeable shares of a Canadian subsidiary of New URC on a one-for-one basis. The election deadline is 5:00 p.m. ET on July 23, 2026.

Upon completion, New URC is expected to be listed on the Nasdaq Stock Market. On closing, the Orion Sellers and Ontario Teachers' are expected to hold approximately 43% and 16%, respectively, of outstanding New URC shares. Both parties have agreed to vote in favor of management recommendations for two years following closing, subject to certain exceptions.

The arrangement requires approval by at least two-thirds of votes cast at the meeting, as well as a simple majority excluding shares held by related and interested parties. Court approval from the Supreme Court of British Columbia is also required.

URC's board of directors unanimously recommends shareholders vote in favor of the arrangement resolution, acting on the unanimous recommendation of a special committee of independent directors. Senior officers, directors, and largest shareholder Uranium Energy Corp. have entered into voting support agreements representing approximately 14.37% of outstanding URC shares.

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