(Proactive Investors, June 19) – Shareholders of both Energy Fuels and Uranerz approved the transaction at their respective meetings on June 18, 2015, and the deal closed later that same day after the US Nuclear Regulatory Commission granted its consent to the transaction.
Shareholders of both Energy Fuels and Uranerz approved the transaction at their respective meetings on June 18, 2015, and the deal closed later that same day after the US Nuclear Regulatory Commission granted its consent to the transaction.
Under the terms of the deal, Energy Fuels bought Uranerz in an all-stock deal valued at roughly US$150 million, creating one of the largest uranium companies in the United States and significantly diversifying its uranium production sources and industry leading resource base.
Each Uranerz shareholder received 0.255 Energy Fuels common shares for each share of Uranerz common stock held. In addition, all outstanding options and warrants to acquire Uranerz shares of common stock entitle the holder thereof to acquire 0.255 common shares of Energy Fuels on exercise thereof at an exercise price equal to the exercise price of such option or warrant divided by 0.255.
The deal has now built a leading integrated conventional and in-situ recovery uranium mining company in the US, 2nd in production only to Cameco, and has a combined NI 43-101 resource base that is the largest in the US among producers.
The new Energy Fuels has become stronger by lowering costs and expanding its uranium sales contract portfolio, making the combined entity more competitive on the U.S. and global uranium sales marketplace.
Energy Fuels operates the only conventional uranium mill in the US, the White Mesa Mill in Utah, and has managed to keep its head above water since 2011 by engaging in targeted production and a cash conservation strategy. Its goal has been to position itself to increase production easily should market conditions continue to improve.
Uranerz’ Nichols Ranch Processing Faciity, which was acquired by Energy Fuels, uses a process known as in-situ recovery in which a solution extracts uranium from sandstone uranium deposits in the Powder River Basin area of Wyoming. It is the newest uranium production center in the US and has a licensed capacity of 2 million pounds of U3O8 per year.
In addition to the White Mesa mill in Utah and the Nichols Ranch ISR operation in Wyoming, the company also owns a producing high-grade uranium mine in Arizona (Pinenut), a high-grade mine in development in Arizona (Canyon), and various additional projects in permitting and development located throughout Utah, Wyoming, Arizona and New Mexico.