LAKEWOOD, CO, Sept. 29, 2015 /PRNewswire/ - Energy Fuels
Inc. (NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the
"Company") is pleased to provide the following operational and
corporate updates.
Augmentation of Nichols Ranch Production
Capabilities:
The Company is pleased to announce that it has commenced
construction of the elution circuit at its Nichols Ranch ("Nichols
Ranch") in situ recovery ("ISR") processing facility located
in Wyoming's Powder River
Basin. Since Nichols Ranch began operations in April 2014, loaded resins have been shipped to
other nearby third party-owned facilities for final yellowcake
stripping, drying and packaging. Upon completion of
construction of the elution circuit at Nichols Ranch, the Company
will have entirely self-contained ISR processing
capabilities.
When the Nichols Ranch Plant was originally designed and
constructed, it was contemplated that elution equipment would be
installed in the future. As a result, space in the plant was
designed to accommodate the facilities and equipment now being
installed. The Company expects to spend approximately
$3.9 million to complete these plant
upgrades. In comparison to continuing to process through
other outside facilities, and based on expected production at
Nichols Ranch, the Company expects this capital investment to
realize a positive return.
Normal Course Issuer Bid for Convertible Debentures:
The Company is also pleased to announce that it intends to
conduct a normal course issuer bid (the "NCIB") for the Company's
outstanding floating-rate convertible unsecured subordinated
debentures, which mature on June 30,
2017 (the "Debentures"). Under the NCIB, the Company
may repurchase up to C$2.2 million of
the Debentures, representing 10% of the public float of the
Debentures, over the next 12 months. As of September 29, 2015, an aggregate of C$22 million principal amount of Debentures are
issued and outstanding. Purchases will be made through the
facilities of the Toronto Stock Exchange ("TSX") and alternative
trading systems in Canada at the
prevailing market price of the Debentures. All Debentures
purchased under the NCIB will be canceled. The Company
believes that the repurchase of Debentures would be advantageous to
the Company, for the following reasons:
1)
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The Debentures were
issued on July 24, 2012 (the "Issue Date") and are currently
trading on the TSX at a substantial discount to both their
redemption amount and the amount due on maturity;
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2)
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Any repurchases would
result in the Company avoiding future interest costs on the
repurchased Debentures; and
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3)
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Since the Issue Date,
the Canadian-US dollar exchange rate has declined by approximately
25% and substantially all of the Company's operations are in the
U.S.
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The Company will have the ability to acquire Debentures under
the NCIB commencing on October 2,
2015. The NCIB will terminate on October 1, 2016 or on such earlier date as the
Company may complete its purchases or otherwise terminate the
NCIB. Pursuant to TSX policies, daily purchases made by the
Company pursuant to the NCIB will not exceed C$2,023 principal amount of the Debentures, being
25% of the average daily trading volume of C$8,094 principal amount of the Debentures on the
TSX for the past six months, subject to certain exceptions
(including block purchases) prescribed by the TSX.
To the knowledge of Energy Fuels, no director, senior officer or
insider of Energy Fuels currently intends to sell any Debentures
under the NCIB. However, sales by any such person through the
facilities of the TSX may occur as the personal circumstances of
such person changes or such person makes decisions unrelated to the
NCIB. The benefits to any such person whose Debentures are
purchased would be the same as the benefits available to all other
holders whose Debentures are purchased under the NCIB
Prospectus Supplement to Qualify At-The-Market Offering of
Common Shares:
The Company is also pleased to announce that on September 29, 2015, the Company filed a
prospectus supplement ("Supplement") in both Canada and the
United States to its Canadian base shelf prospectus (the
"Canadian Base Prospectus") and U.S. registration statement on Form
F-10 (the "Registration Statement"), both of which were filed on
April 9, 2014. Concurrent with
the filing of the Supplement, the Company entered into a Controlled
Equity OfferingSM Sales Agreement with Cantor Fitzgerald
& Co. ("Cantor"), pursuant to which the Company may, at its
discretion from time to time, sell, through Cantor as agent, up to
US$15,640,000 worth of common shares
by way of an "at-the-market" offering (the "ATM"). Sales of
the shares, if any, would occur by means of ordinary brokers'
transactions or block trades, with sales only being made on the
NYSE MKT at market prices. Any decision to undertake sales of
common shares pursuant to the ATM would be at the Company's sole
discretion. No common shares will be offered or sold through
the ATM on the TSX.
The current intention is to use the proceeds, if any, of the ATM
to: (i) repurchase any Debentures pursuant to the NCIB; (ii)
fund development at Nichols Ranch (including the plant upgrades
described above); (iii) finance the previously announced
development of the high-grade Canyon conventional uranium mine in
Arizona; and (iv) fund the
Company's general corporate needs and working capital
requirements. Copies of the Supplement, the Canadian Base
Prospectus, the Registration Statement, and any other related
documents are available for free by visiting the Company's profiles
on SEDAR at www.sedar.com or EDGAR www.sec.gov, as
applicable. Alternatively, Cantor can arrange to send
interested investors the Supplement and the Registration Statement
by contacting, Cantor Fitzgerald & Co., attention: Equity
Capital Markets, 110 East 59th Street, New York, New York 10022, telephone:
212-829-7122, and the Company can arrange to send interested
investors the Supplement and the Canadian Base Prospectus by
contacting the Company's Investor Relations department at (303)
974-2140.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "By upgrading the Nichols Ranch
Plant, Energy Fuels will have self-sufficient ISR uranium
production, thereby fixing the operating costs associated with
these activities and avoiding future toll processing fee increases
and related uncertainties. In addition, we are proactively
managing our balance sheet and expanding our corporate financing
options through the NCIB and ATM, and we believe both options can
lower our cost of capital and increase our financial
flexibility. We believe the NCIB will allow us to repurchase
Debentures at a significant discount to both their redemption value
and the amount due at maturity, during a currently favorable
foreign exchange environment. ATMs are employed by a number
of U.S.-listed public companies, including U.S.-listed mining
companies, and we believe the ATM will provide additional
flexibility to raise equity financing in the future, if and when
required."
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of,
common shares or Debentures in any state or province in which such
offer, solicitation or sale would be unlawful, prior to
registration or qualification under the securities laws of any such
state, province, or other jurisdiction.
About Energy Fuels: Energy Fuels is
a leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels operates two of America's key uranium production centers, the
White Mesa Mill in Utah and the
Nichols Ranch Processing Facility in Wyoming. The White Mesa
Mill is the only conventional uranium mill operating in the U.S.
today and has a licensed capacity of over 8 million pounds of
U3O8 per year. The Nichols Ranch
Processing Facility, acquired in the Company's acquisition of
Uranerz Energy Corporation, is an in situ recovery ("ISR")
production center with a licensed capacity of 2 million pounds of
U3O8 per year. Energy Fuels also has
the largest NI 43-101 compliant uranium resource portfolio in the
U.S. among producers, and uranium mining projects located in a
number of Western U.S. states, including two producing mines, mines
on standby, and mineral properties in various stages of permitting
and development. The Company's common shares are listed on
the NYSE MKT under the trading symbol "UUUU", and on the Toronto
Stock Exchange under the trading symbol "EFR".
CAUTIONARY STATEMENT 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, including:
the ability of the Company to augment its production capabilities,
completion of the elution plant, returns associated with the plant
upgrades, the ability of the Company to repurchase
Debentures under favorable conditions under the NCIB, and
the successful utilization of the ATM. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" "does not
expect", "is expected", "is likely", "budget" "scheduled",
"estimates", "forecasts", "intends", "anticipates", "does not
anticipate", or "believes", or variations of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur", "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 include risks associated with: the
ability of the Company to augment its production capabilities,
completion of the elution plant, obtaining the returns associated
with the plant upgrades, the ability of the Company to
repurchase Debentures under favorable conditions under the
NCIB, the utilization of the ATM, and the other factors
described under the caption "Risk Factors" in the Company's Annual
Information Form dated March 18,
2015, which is available for review on SEDAR at
www.sedar.com, in its Form 40-F, which is available for
review on EDGAR at www.sec.gov/edgar.shtml and in its
prospectus supplement dated September 29,
2015 which is available for review on SEDAR and EDGAR.
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.
The Company assumes no obligation to update the information
in this communication, except as otherwise required by
law.
SOURCE Energy Fuels Inc.