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Energy Fuels Enters into Agreement to Acquire and Extinguish Royalties on its Nichols Ranch Property as well as Acquire and Hold Royalties on Nearby Operating and Permitted ISR Uranium Projects Owned by Cameco
Energy Fuels Enters into Agreement to Acquire and Extinguish Royalties on its Nichols Ranc...
About this update from Energy Fuels Inc.
[{"type":"text","content":"\n\n\n\nEnergy Fuels Enters into Agreement to Acquire and Extinguish Royalties on its Nichols Ranch Property as well as Acquire and Hold Royalties on Nearby Operating and Permitted ISR Uranium Projects Owned by Cameco\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nLAKEWOOD, CO, Nov. 13, 2017\n\n\n\nLAKEWOOD, CO, Nov. 13, 2017 /CNW/ - 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 (the \"Agreement\") to acquire all of the issued and outstanding shares of Excalibur Industries (\"Excalibur\"). Excalibur holds royalties on the Company's Nichols Ranch ISR project in Wyoming, as well as royalties on several operating, standby and advanced-stage ISR projects in Wyoming owned and operated by Power Resources, Inc., a wholly-owned subsidiary of Cameco Corporation (collectively, the \"Royalties\"). The transaction will occur by way of a merger of Excalibur and Energy Fuels' wholly-owned subsidiary, EFR Utah, Inc.\n\nThrough the transaction, the Company is acquiring a 6% - 8% sliding-scale gross proceeds production royalty (based on the then prevailing month-end spot price) on Energy Fuels' Nichols Ranch, Hank and Doughstick properties (Doughstick is included in the Company's Jane Dough Project expansion area). This royalty also applies to the nearby Niles Ranch, Willow Creek, and Verna Ann uranium properties also owned by the Company. After closing of the transaction, the Company plans to extinguish the royalty and will no longer be required to pay the royalty on future production from these projects. The Company expects to produce approximately 140,000 to 160,000 pounds of uranium in 2018 from the Nichols Ranch Project. Further, there are four (4) additional fully-permitted wellfields at Nichols Ranch and fourteen (14) fully permitted wellfields at the Company's Jane Dough Project, of which Doughstick represents a portion, that are expected to be developed as an extension of Nichols Ranch in the future. The C...