Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”), a leading producer of uranium in the United States, is pleased to announce that it has entered into an agreement to sell certain non-core uranium properties in Wyoming to Uranium Energy Corp. (“UEC”) for $5.39 million, including $2.94 million of cash and $2.45 million of shares in UEC that will be priced upon the closing of the transaction.
The disposed properties are adjacent to the Reno Creek Project, recently acquired by UEC. The Company considers these properties to be non-core to its current and future uranium recovery operations. As a standalone project, these properties would require extensive permitting and licensing work, and significant time and capital, for Energy Fuels to bring them into commercial operation in the future. Therefore, they are much better suited to be combined with UEC’s Reno Creek Project. In addition, the Company holds significant low cost ISR uranium assets that are currently producing or that can be brought into production in Wyoming much sooner, including the operating and fully-permitted Nichols Ranch ISR Project, and the fully-permitted Jane Dough and Hank properties. The Company also holds significant low cost ISR uranium resources and assets at the fully-constructed, licensed and permitted Alta Mesa ISR Project in South Texas. The disposed properties are estimated to contain 3.8 million tons of Measured and Indicated Mineral Resources with an average grade of 0.06% eU3O8 containing approximately 4.3 million pounds of uranium. This sale will not impact Energy Fuels’ higher grade Nichols Ranch, Jane Dough, Hank, West North Butte, North Rolling Pin, and the Arkose Mining Venture ISR properties. In aggregate those properties hold 4.6 million tons of Measured and Indicated Mineral Resources with an average grade of 0.12% eU3O8 containing approximately 10.7 million pounds of uranium, along with an additional 3.4 million tons of Inferred Mineral Resources with an average grade of 0.10% eU3O8 containing 7.1 million pounds of uranium.
Stephen P. Antony, CEO of Energy Fuels stated: “At a time when companies are experiencing weak uranium markets, we are pleased to realize significant value from non-core uranium properties that are not a part of Energy Fuels’ long-term business plan. The proceeds from the sale will significantly enhance our working capital position, and we look forward to closing this transaction. ”
About Energy Fuels: Energy Fuels is a leading integrated US-based uranium mining company, supplying U3O8 to major nuclear utilities. Energy Fuels holds three of America’s key uranium production centers, the White Mesa Mill in Utah, the Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of over 8 million pounds of U3O8 per year. The Nichols Ranch Processing Facility is an ISR production center with a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is an ISR production center currently on care and maintenance. Energy Fuels also has the largest NI 43-101 compliant uranium resource portfolio in the U.S. among producers, and uranium mining projects located in a number of Western U.S. states, including one producing ISR project, mines on standby, and mineral properties in various stages of permitting and development. The Company also produces vanadium as a co-product of its uranium production from certain of its mines on the Colorado Plateau, as market conditions warrant. The Company’s common shares are listed on the NYSE MKT under the trading symbol “UUUU”, and on the Toronto Stock Exchange under the trading symbol “EFR”.
Source: Energy Fuels
