LAKEWOOD, CO, June 17, 2016 /PRNewswire/ - 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 is considering
seeking amendments to the terms of its existing Cdn$22 million principal amount of floating rate,
convertible, unsecured, subordinated debentures (the "Debentures"),
and has commenced advance notice procedures in order to be in a
position to call a meeting of Debenture holders to be held on
August 4, 2016, should the Company
decide to proceed with the amendments.
The amendments under consideration include an extension of the
term of the Debentures, which are currently set to mature on
June 30, 2017, a reduction in the
current conversion price of Cdn$15.00, to a premium that better reflects
current market conditions, the addition of certain redemption
rights, the addition of certain provisions required under the US
Trust Indenture Act, as well as other amendments that the Company
may determine would be beneficial to the Company and the Debenture
holders. The Debentures currently trade on the Toronto Stock
Exchange ("TSX") under the symbol "EFR.DB." Any amendments to
the Debentures will be subject to the approval of the Debenture
holders and the TSX.
The Company has several alternatives available to it to address
the upcoming maturity of the Debentures, including retiring the
Debentures with shares or cash under the existing terms of the
Debentures, refinancing the Debentures with another financing
vehicle, or amending the terms of the Debentures to extend the
maturity date. The Company also previously announced that it
has in place a Normal Course Issuer Bid ("NCIB") which allows the
Company to purchase for cancellation up to Cdn$2.2 million of the principal amount of the
Debentures, through open market purchases at prevailing prices on
the TSX, should market conditions warrant. The NCIB will
remain in effect until the earlier of October 1, 2016 or the date on which the Company
has purchased the maximum number of Debentures permitted under the
NCIB. As of the date hereof, the Company has not repurchased
any Debentures under the NCIB.
If the Company decides to seek amendments to the Debentures, it
is expected that a proxy circular will be mailed to the
Debenture-holders on or before July
11, 2016. The circular will describe the proposed
revised terms. In order for the amendments to be approved,
the votes of holders of two-thirds of the principal amount of
Debentures represented in person or by proxy at the meeting must be
cast in favor of the amendments. A quorum for the meeting
will be 25% of the principal amount of Debentures.
If pursued, the alternative of extending the Debentures would
offer the Company additional financial flexibility, including the
ability to preserve working capital to the extent the Debentures
would otherwise have been retired by the payment of cash and to
reduce equity dilution in 2017 to the extent the Debentures would
otherwise have been retired by the issuance of equity in
2017. The amendments would also benefit Debenture holders by
better aligning the terms of the Debentures with current market
conditions.
A decision on whether the Company will pursue the amendments to
the Debentures is expected to be announced in early-July, 2016.
The Company intends to obtain input from certain holders of
Debentures before making its decision.
About Energy Fuels: Energy Fuels is a
leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels holds three of America's key uranium production centers, the
White Mesa Mill in Utah, the
Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in
Texas. 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. Alta Mesa is an ISR production center with an
operating capacity of 1.5 million pounds of
U3O8 per year that is currently on
standby. 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".
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 alternatives
available to the Company regarding the upcoming maturity of the
Debentures; whether or not any amendments to the Debentures may be
sought; whether any required approval of the TSX and the Debenture
holders will be obtained; any flexibility that may be provided to
the Company from any such amendments, including preserving working
capital and reducing dilution; any benefits to the Company or the
Debenture holders from any proposed amendments; 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 being a leading
producer of uranium;the alternatives available to the
Company regarding the upcoming maturity of the Debentures; whether
or not any amendments to the Debentures may be sought; whether any
required approvals of the TSX and the Debenture holders will be
obtained; any flexibility that may be provided to the Company from
any such amendments, including preserving working capital and
reducing dilution; any benefits to the Company or the Debenture
holders from any proposed amendments; 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.
SOURCE Energy Fuels Inc.