Energy Fuels Enters Into Strategic Relationship Agreement With KEPCO
December 17 2013 - 04:05PM
Marketwired
Energy Fuels Enters Into Strategic Relationship Agreement With
KEPCO
TORONTO, ONTARIO and LAKEWOOD, COLORADO--(Marketwired - Dec 17,
2013) - Energy Fuels Inc. (NYSEMKT:UUUU)(TSX:EFR) ("Energy Fuels"
or the "Company") is pleased to announce that it has entered into a
Strategic Relationship Agreement (the "SRA") with Korea Electric
Power Corporation ("KEPCO"). KEPCO (NYSE:KEP)(KRX:015760) is the
largest electric utility in South Korea, responsible for 93% of
South Korea's electricity generation and the development of nuclear
power projects worldwide. The South Korean government owns a 51%
equity interest in KEPCO. On the 2013 Fortune Global 500 ranking of
the world's largest companies, KEPCO was ranked 235. KEPCO is also
a member of the World Energy Council, the World Nuclear Association
and the World Association of Nuclear Operators. KEPCO is Energy
Fuels' largest shareholder, and an affiliate of KEPCO is Energy
Fuels' largest uranium customer, based on FY-2013 deliveries. Mr.
Eun Ho Cheong, KEPCO's Vice President of Overseas Resources Project
Development, is a member of Energy Fuels' board of directors.
The key objectives of the SRA are to establish a long term and
strategic collaborative business relationship and to promote the
development of each company's business. The SRA addresses a number
of areas of interest for both Energy Fuels and KEPCO, including the
development of Energy Fuels' Wyoming projects, KEPCO's seat on the
board of directors of Energy Fuels, visitation and secondment
opportunities for KEPCO, and future qualified bidding by Energy
Fuels on uranium concentrate supply contracts for KEPCO and its
affiliates.
Within the SRA, Energy Fuels and KEPCO have agreed to cooperate
in the evaluation of a joint development strategy with respect to
Energy Fuels' Sheep Mountain, Gas Hills and/or Juniper Ridge
Projects in Wyoming (the "Wyoming Projects"). As previously
announced, Energy Fuels is currently evaluating the co-development
of its Wyoming Projects and is targeting the development of a 2nd
major uranium production center for the Company in the State of
Wyoming. Taken together, these three projects contain approximately
19.3 million tons of Measured and Indicated Mineral Resources with
average grades that range from 0.06% to 0.13% U3O8 containing 40.9
million lbs. of U3O8. Included in these resource estimates, the
Sheep Mountain Project has approximately 7.4 million tons of
Probable Mineral Reserves with an average grade of 0.123% U3O8,
containing 18.4 million lbs. of U3O8. In March 2012, Energy Fuels
completed a Prefeasibility Study ("PFS") for the Sheep Mountain
Project only. Under the base case scenario, the project
demonstrated attractive project economics based on a U3O8 price of
US$65 per lb., including 1.5 million lbs. of annual U3O8
production, US$32.31 per lb. operating costs, 42% internal rate of
return, and US$201 million net present value. The Company believes
the project economics for the Sheep Mountain Project may be
enhanced by co-developing it with the Gas Hills and/or Juniper
Ridge Projects. The PFS for the Sheep Mountain Project is filed
under Energy Fuels' SEDAR profile. As previously announced, KEPCO
was a party to a strategic venture arrangement with Strathmore
Minerals Corp. ("Strathmore") in connection with the development of
the Gas Hills Project in Wyoming. On August 30, 2013, Energy Fuels
acquired all of the issued and outstanding shares of Strathmore by
way of a plan of arrangement.
"Entering into this Strategic Relationship Agreement further
solidifies Energy Fuels' close relationship with KEPCO," stated
Stephen P. Antony, President and CEO of Energy Fuels. "I believe
that KEPCO is a world-class strategic partner who recognizes the
quality, uniqueness and scalability of Energy Fuels' asset base.
Strengthening our relationship with KEPCO and realizing the
benefits of co-developing our uranium projects in Wyoming were
important synergies that Energy Fuels identified in its acquisition
of Strathmore. I believe this Strategic Relationship Agreement is
an important first step towards achieving those synergies."
Stephen P. Antony, P.E., President & CEO of Energy
Fuels, is a Qualified Person as defined by National
Instrument 43-101 and has reviewed and approved the technical
disclosure contained in this news release.
About Energy Fuels
Energy Fuels is currently America's largest conventional uranium
producer, supplying approximately 25% of the uranium produced in
the United States. Energy Fuels operates the White Mesa Mill, which
is the only conventional uranium mill currently operating in the
U.S. The mill is capable of processing 2,000 tons per day of
uranium ore and has a licensed capacity of over 8 million lbs. of
U3O8 per year. Energy Fuels has projects located throughout the
Western U.S., including producing mines and mineral properties in
various stages of permitting and development. The Company's common
shares are listed on the Toronto Stock Exchange under the trading
symbol "EFR" and on the NYSEMKT under the trading symbol
"UUUU".
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain "Forward-Looking Information"
and "Forward-Looking Statements" within the meaning of applicable
Canadian and United States securities legislation, which may
include, but is not limited to, statements with respect to the
future financial or operating performance of the Company and its
projects, the objectives of the SRA, the possibility of
establishing a joint development strategy on the Wyoming Projects
with KEPCO, the possibility of developing a 2nd production center
in Wyoming, and the completion of feasibility studies, economic
assessments and mineral resource estimates. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "promote", "expects" "does not
expect", "is expected", "estimates", "anticipates", "does not
anticipate", or "believes", or variations of such words and
phrases, or state that certain actions, events or results "may",
"could", or "will be taken", "be achieved" or "have the potential
to". All statements, other than statements of historical fact,
herein are considered to be forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
express or implied by the forward-looking statements. Factors that
could cause actual results to differ materially from those
anticipated in these forward-looking statements are described under
the caption "Risk Factors" in the Company's Annual Information Form
dated December 20, 2012, which is available for review on the
System for Electronic Document Analysis and Retrieval at
www.sedar.com. Forward-looking statements contained herein are made
as of the date of this news release, and the Company disclaims,
other than as required by law, any obligation to update any
forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates
or opinions should change, or otherwise. There can be no assurance
that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Cautionary Note to US Investors Concerning Estimates of Measured
and Indicated Resources and Probable Mineral Reserves
While the terms "measured mineral resource," "indicated mineral
resource", and "probable mineral reserves" are recognized and
required by Canadian regulations, they are not defined terms under
standards in the United States and normally are not permitted to be
used in reports and registration statements filed with the United
States Securities and Exchange Commission (the "SEC"). As such,
information contained in this news release concerning descriptions
of mineralization and resources under Canadian standards may not be
comparable to similar information made public by U.S. companies in
SEC filings. With respect to "indicated mineral resource" there is
a great amount of uncertainty as to their existence and a great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an "indicated mineral resource"
will ever be upgraded to a higher category. Investors are cautioned
not to assume that any part or all of mineral deposits in these
categories will ever be converted into reserves.
Energy Fuels Inc.Curtis H. MooreInvestor Relations(303) 974-2140
or Toll Free:
1-888-864-2125investorinfo@energyfuels.comwww.energyfuels.com
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