Business
Laramide Enters into Toll Milling Agreement with Energy Fuels
TORONTO, Jan. 18, 2013 /CNW/ - Laramide Resources Ltd. ("Laramide") (TSX: LAM) and Energy ...
About this update from Laramide Resources Ltd.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Jan. 18, 2013 /CNW/ - Laramide Resources Ltd. (\"Laramide\") (TSX: LAM) and Energy Fuels Inc.\n (\"Energy Fuels\") (TSX: EFR) are pleased to announce that they have entered into a toll milling\n agreement, whereby Energy Fuels' White Mesa Mill will process all\n material produced from Laramide's 100% owned and operated La Sal II\n Uranium Mine Project in Utah.\n\n\nThe agreement has a two-year term with an optional three-year extension\n and commences in January 2013.\n\n\nUnder the terms of the agreement, Laramide will transport material\n produced at La Sal II to Energy Fuels' nearby White Mesa Mill for\n processing of up to 20,000 tons during the test phase. Laramide will\n pay to Energy Fuels the costs to mill its ore, a capital charge plus a\n toll milling fee per ton of ore, which will be partly linked to the\n long-term uranium price. Laramide's agreement with Energy Fuels\n accommodates additional ore production once La Sal II is permitted for\n full production.\n\n\n\"This agreement is a win-win situation for both Laramide and Energy\n Fuels, and we are pleased we entered into this transaction with them,\"\n said Marc Henderson, President and Chief Executive Officer, Laramide.\n \"The considerable progress made at La Sal II over the past few years\n meets our stated objective of near-term production visibility from our\n U.S. asset base. We look forward to delivering on our next development\n and operational targets and for continuing recovery in the uranium\n markets,\" Mr. Henderson stated.\n\n\n\"Energy Fuels is happy to help bring the La Sal II mine into\n production,\" said Stephen P. Antony, President and CEO of Energy\n Fuels, \"Laramide's production activities are positive for Energy Fuels'\n White Mesa Mill, and toll milling will continue to be a low-risk source\n of revenue for the company.  This transaction also underscores the\n strategic importance of owning the only operating uranium mill in the\n US that is within trucking distance of a large resource base with\n significant historical production.  Over time, we expect to grow this\n type of revenue source by signing toll milling and/or ore purchase\n arrangements with other uranium property owners in the region who will\n require the functionality of the White Mesa Mill in order to mine an...