Sprott Closes ‘URNM’ Acquisition
The Canadian commodity firm now owns the second-largest uranium equity fund in the U.S.
Sprott Asset Management has completed its takeover of the North Shore Global Uranium Mining ETF (URNM), renaming it the Sprott Uranium Miners ETF.
The Toronto-based Sprott completed the $1.18 billion fund’s reorganization under its own ETF trust on Monday, closing a deal that it had announced last November. Terms of the deal were not disclosed.
The fund retains its previous expense ratio of 0.85% and still follows the North Shore Global Uranium Mining Index that Sprott licensed, meaning the fund’s strategies aren’t changing under the new management.
URNM and the $2.16 billion Global X Uranium ETF (URA) rose to as high as a 30% and 24% gain year-to-date in late April, respectively, on speculation that the West would turn to nuclear energy en masse as part of a broader strategy to wean itself off Russian oil.
Uranium futures on the Chicago Mercantile Exchange have nosedived in the last week, however, with prices falling from $64 per pound on April 20 to $56.60 per pound and dragging uranium mining equities in tow.
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