UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 27, 2016
ENERGY
FUELS INC.
(Exact name of registrant as specified in its charter)
Ontario |
001-36204 |
98-1067994 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer
Identification No.) |
225 Union Blvd., Suite 600
Lakewood, Colorado |
80228 |
(Address of principal executive offices) |
(Zip Code) |
(303) 974-2140 |
(Registrant’s telephone number, including area code) |
N/A |
(Former name or former address, if changed since last report) |
Check the appropriate
box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 8.01 Other Events.
On May 27, 2016, Energy Fuels Inc. issued a
press release attached hereto as Exhibit 99.1
The information furnished pursuant to this
Item 8.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise
subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing under the
Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated May 27, 2016
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
|
ENERGY FUELS INC.
(Registrant) |
Dated: May 27, 2016 |
By: /s/ David C. Frydenlund
David C. Frydenlund
Senior Vice President, General Counsel and Corporate Secretary |
|
|
Exhibit 99.1
Energy Fuels Completes Transaction that Increases its Ownership
in the Roca Honda Project to 100%
LAKEWOOD, CO, May 27, 2016 /CNW/ - Energy Fuels Inc.
(NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company"), a leading producer of uranium in the United
States, is pleased to announce that it has completed the previously announced acquisition of Sumitomo Corporation's ("Sumitomo's")
40% interest in the Roca Honda Project. The Company now owns and controls 100% of the Roca Honda Project, which is one of
the largest and highest-grade uranium projects in the United States.
As a result of the acquisition, Energy
Fuels has significantly increased the size of its industry-leading U.S.-based uranium resource portfolio by 6.8% (Measured &
Indicated) and 12.4% (Inferred). Energy Fuels now owns 100% of the uranium resources at the Roca Honda Project, which, according
to a February 27, 2015 Technical Report and Preliminary Economic Analysis (the "PEA"), prepared in accordance with National
Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") (see disclosure below relating to reliance
on a PEA), holds a total of 1.5 million tons of Measured and Indicated Mineral Resources with an average grade of 0.48% U3O8
containing 14.6 million pounds of uranium, together with 1.2 million tons of Inferred Mineral Resources with an average grade of
0.47% U3O8, containing 11.2 million pounds of uranium. The project is currently at an advanced stage
of permitting and boasts attractive operating costs, total expected production of approximately 25 million pounds of uranium, and
a nine year mine life.
The PEA assumes that Roca Honda mined
material will be processed at the Company's 100%-owned White Mesa Mill, which is within economic trucking distance. Furthermore,
the cash costs described in the PEA for the Roca Honda Project cover 100% of the costs of the White Mesa Mill, even though the
Roca Honda Project will only utilize a portion of the mill's capacity.
As previously announced, the Company
also holds properties adjacent to the Roca Honda Project that contain significant additional historical resources. According
to a 2007 report, these adjacent properties contain an additional 0.7 million tons at a grade of 0.34% eU3O8,
containing 4.8 million pounds of uranium. These properties also contain existing mine infrastructure and excellent exploration
prospects, which have the potential to enlarge the scope of the project and further improve upon the economics currently described
in the PEA (see disclosure below relating to reliance on historical resource estimates).
As consideration for the 40% interest,
Energy Fuels (i) issued to Sumitomo 1,212,173 common shares at closing, valued at US$2.8 million based on the volume-weighted average
price of the shares on the NYSE MKT over the 10 trading days ending on May 26, 2016; and (ii) has agreed to pay US$4.5 million
in cash upon the first commercial production of uranium from the Roca Honda Project.
Stephen P. Antony, President and CEO
of Energy Fuels stated: "Energy Fuels is pleased to complete this important acquisition at what we believe is a reasonable
price, as it provides the Company with a number of benefits, including complete control over the timing, budget, and scope of the
project and complete internalization of the benefits of the project when it goes into production by processing Roca Honda material
at our White Mesa Mill, which is the only licensed conventional uranium mill currently operating in the U.S. The Roca Honda
Project is an important component in our strategy of combining large-scale optionality and leverage to improving uranium markets,
with lower cost production from our Nichols Ranch Project, alternate feed materials, certain of our Arizona Strip conventional
properties, and our pending acquisition of Mesteña Uranium, LLC. We thank Sumitomo for being a valued joint venture
partner over the past several years and wish them the best of luck in their new focus on producing mine assets."
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 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 one producing ISR project, 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".
Stephen P. Antony, P.E., President
& CEO of Energy Fuels, is a Qualified Person as defined by Canadian National Instrument 43-101 and has reviewed
and approved the technical disclosure contained in this news release. Readers should be cautioned that the PEA is preliminary
in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
Readers should also be cautioned that a qualified person has not done sufficient work to classify the historical estimate as a
current estimate of mineral resources or mineral reserves in accordance with NI 43-101. This historical resource estimate
from 2007, prepared by Uranium Resources Inc., was classified as a "Probable Reserve." However, this category was
applied without using applicable mining standards and economics, and should not be considered reserves by industry definition.
The Company believes this historical estimate is relevant and reliable, as the methodology was well documented and utilized industry
standard practice. However, the methodologies used do not reflect current best industry practices. The Company does
not consider these historical estimates to be equivalent to current mineral resources or mineral reserves as defined in NI 43-101,
nor has the Company completed sufficient work to confirm an NI 43-101 compliant resource. Therefore, the historical estimates
cannot, and should not, be relied upon as NI 43-101 resources or reserves.
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this news release, including: any information relating to the Company
being a leading producer of uranium;the Company's expectations as to longer term fundamentals in the market and price projections;
scalability, and the Company's ability to be able to restart or increase production as market conditions warrant; the ability of
the Company to realize the expected benefits of the acquisition; the expected costs or production of the Company's projects; estimates
relating to current mineral resources; expectations regarding the ability to use existing mine infrastructure and exploration potential;
the ability to enlarge the scope of the project and improve upon the economics of the project; the ability to bring the project
into commercial production; and any other statements regarding Energy Fuels' future expectations, beliefs, goals or prospects;
constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking
statements"). All statements in this news release that are not statements of historical fact (including statements containing
the words "expects", "does not expect", "plans", "anticipates", "does not anticipate",
"believes", "intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions) should be considered forward-looking statements. All such
forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Energy Fuels' ability
to control or predict. A number of important factors could cause actual results or events to differ materially from those
indicated or implied by such forward-looking statements, including without limitation factors relating to: the Company's expectations
as to longer term fundamentals in the market and price projections; scalability, and the Company's ability to be able to restart
or increase production as market conditions warrant; the ability of the Company to realize the expected benefits of the acquisition;
the expected costs or production of the Company's projects; estimates relating to current mineral resources; expectations regarding
the ability to use existing mine infrastructure and exploration potential; the ability to enlarge the scope of the project and
improve upon the economics of the project; the ability to bring the project into commercial production; and other risk factors
as described in Energy Fuels' most recent annual report on Form 10-K and quarterly financial reports. Energy Fuels
assumes no obligation to update the information in this communication, except as otherwise required by law. Additional information
identifying risks and uncertainties is contained in Energy Fuels' filings with the various securities commissions which are available
online at www.sec.gov and www.sedar.com. Forward-looking statements are provided for the purpose of providing information
about the current expectations, beliefs and plans of the management of Energy Fuels relating to the future. Readers are cautioned
that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on
these forward-looking statements, that speak only as of the date hereof.
Cautionary Note to United States
Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This news release contains certain disclosure
that has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S.
securities laws. Unless otherwise indicated, all reserve and resource estimates included in this news release have been prepared
in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101")
and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") classification system. Canadian standards,
including NI 43-101, differ significantly from the requirements of U.S. securities laws, and reserve and resource information contained
in this news release may not be comparable to similar information disclosed by companies reporting only under U.S. standards.
In particular, the term "resource" does not equate to the term "reserve" under SEC Industry Guide 7.
United States investors are cautioned not to assume that all or any of Measured or Indicated Mineral Resources will ever be
converted into mineral reserves. Investors are cautioned not to assume that all or any part of an "Inferred Mineral
resource" exists or is economically or legally minable. Energy Fuels does not hold any Reserves as that term is defined
by SEC Industry Guide 7. Please refer to the section entitled "Cautionary Note to United States Investors Concerning
Disclosure of Mineral Resources" in the Company's most recent annual report on Form 10-K for further details.
SOURCE Energy Fuels Inc.
%CIK: 0001385849
For further information: Investor Relations Inquiries: Energy
Fuels Inc., Curtis Moore - VP - Marketing & Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com
CO: Energy Fuels Inc.
CNW 16:25e 27-MAY-16
This regulatory filing also includes additional resources:
ex991.pdf
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