As the slow but inexorable recovery of the maligned uranium sector continues, Toro Energy (ASX:TOE) has secured a funding lifeline as well as a toehold in several high-grade uranium assets in Canada. Toro announced last week a complex funding and asset exchange deal with Canadian institutional investor Sentient Group. It will see Sentient make an immediate equity investment of $10 million into Toro and transfer to Toro a 19.8-percent equity stake and convertible notes in TSX-listed uranium developer Strateco Resources (TSX:RSC). In addition, negotiations continue with Sentient regarding further funding of up to $10 million to advance Toro's Western Australian uranium projects. The funding not only provides Toro with a much-needed cash injection — the company was reduced to almost AU$5 million at the end of the last quarter — but is also a stepping stone to greater industry consolidation at a time when asset prices remain subdued due to uranium price softness and regulatory hurdles. Calcrete-style deposits Toro began life about 10 years ago during the uranium boom of the mid 2000s as a spin out with large land holdings in South Australia, which had already thrown up several significant roll-front uranium deposits. However, despite the proven prospectively of that terrain, exploration proved more difficult than anticipated and within a short space of time, Toro shifted westward when it acquired several high-value calcrete uranium prospects in Western Australia. Calcrete-style deposits, like the sandstone or roll-front styles, are formed from the movement of uranium dissolved in water, the contrast being that this movement occurs on the surface rather than underground. Uranium is dissolved from surficial granites during brief rainfall events in otherwise arid terrains, then transported via surface flow to inland salt lakes where the uranium is deposited as salts as the water ultimately evaporates.