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Energy Fuels Completes Sale of Alta Mesa Property to enCore Energy for Total Gross Proceeds of $120 Million
Sale provides Energy Fuels with significant non-dilutive funding for expansion of industry-leading US uranium production and completion of 'Phase 1' rare earth
About this update from Energy Fuels Inc.
[{"type":"text","content":" Sale provides Energy Fuels with significant non-dilutive funding for expansion of industry-leading US uranium production and completion of 'Phase 1' rare earth separation circuit. LAKEWOOD, Colo., Feb. 15, 2023 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (\"Energy Fuels\" or the \"Company\") is pleased to announce that it has completed the sale (the \"Closing\") of three (3) wholly-owned subsidiaries that together hold Energy Fuels' Alta Mesa ISR Project (\"Alta Mesa\") to enCore Energy Corp. (\"enCore\") for total consideration of $120 million (the \"Transaction\"). Unless otherwise indicated, all references to dollar amounts in this press release are references to US$. The consideration is comprised of: $60 million cash at or prior to Closing; and $60 million in a secured convertible note (the \"Note\"), payable in two (2) years from the Closing, bearing annual interest of eight percent (8%). The Note will be convertible at Energy Fuels' election into enCore common shares at a conversion price of $2.9103 per share, being a 20% premium to the 10-day volume-weighted average price of enCore shares ending the day before the Closing. enCore was recently listed on the NYSE American and also trades on the TSX Venture Exchange. The Note is guaranteed by enCore and is fully secured by Alta Mesa. Unless a block trade or similar distribution is executed by Energy Fuels to sell enCore shares received upon conversion of the Note, Energy Fuels will be limited to converting the Note into a maximum of $10 million principal amount per thirty (30) day period. In addition, enCore is required to replace the existing reclamation bonds for the Alta Mesa project shortly after the Closing, which will result in Energy Fuels receiving an additional $3.6 million cash as a return of collateral from those bonds. The Transaction also reduces the Company's holding costs related to Alta Mesa by approximately $2 million per year. The Transaction provides Energy Fuels with significant additional cash and working capital, enabling the Company to ramp-up its US industry-leading uranium and rare earth element (\"REE\") production, while avoiding dilution to shareholders. In addition, the Note provides Energy Fuels with significant exposure to uranium market upside through potential conversion into enCore common shares. Boosting Industry-Leading US...