Business
Energy Fuels Significantly Strengthens Uranium Position in Wyoming through Acquisition of Royalties; Provides State with Notice of Intent to Repay Debt
LAKEWOOD, CO, Aug. 14, 2018 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) ("Energy Fuels" or the "Company"), a leading producer of uranium and vanad
About this update from Energy Fuels Inc.
[{"type":"text","content":" LAKEWOOD, CO, Aug. 14, 2018 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (\"Energy Fuels\" or the \"Company\"), a leading producer of uranium and vanadium in the United States, is pleased to announce that it has completed the previously announced acquisition from Excalibur Industries (\"Excalibur\") of royalties on the Company's 100%-owned Nichols Ranch in situ recovery (\"ISR\") project in Wyoming (\"Nichols Ranch\"), along with 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 Company has also provided the State of Wyoming with a notice of its intent to repay and retire its Wyoming Industrial Development Revenue Bond (\"Wyoming Debt\"), which has a balance of $8.3 million as of the date of this release. Acquisition of Royalties: Today, the Company acquired a 6% - 8% sliding-scale gross proceeds production royalty on its Nichols Ranch, Hank and Doughstick properties (Doughstick is a part of the Company's Jane Dough Project expansion area). This royalty also applies to the nearby Niles Ranch, Willow Creek, and Verna Ann properties, which are important pipeline uranium properties also owned by the Company. Acquisition of this royalty is expected to significantly decrease the Company's cost of production at Nichols Ranch. Energy Fuels also acquired the 4% gross proceeds production royalty on Cameco's North Butte/Brown Ranch Project (\"North Butte\"), the Ruby Ranch Project, and the Greasewood property. North Butte is a fully permitted and operational project that has been operated by Cameco as a satellite to its Smith Ranch-Highland ISR Project since 2013. In November 2017, the Company announced that this transaction was to occur by way of a merger of Excalibur with an Energy Fuels subsidiary. However, the parties subsequently agreed to structure the transaction as a purchase of assets. At the closing today, the Company delivered to Excalibur 995,619 common shares of Energy Fuels having a total value of $2.90 Million, which were priced at $3.26 per share based on the volume-weighted average price (\"VWAP\") of Energy Fuels' shares on the NYSE American for the five trading days ending on August 13, 2018, as well as approximately $25,000 cash for all ...