Sprott Closes ‘URNM’ Acquisition

Sprott Closes ‘URNM’ Acquisition

The Canadian commodity firm now owns the second-largest uranium equity fund in the U.S.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

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. 

 

Contact Dan Mika at [email protected], and follow him on Twitter

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.