LAKEWOOD, CO, Oct. 31, 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 entered into a
contract to secure additional quantities of one of its currently
licensed uranium-bearing alternate feed materials for processing at
the Company's 100%-owned White Mesa Mill (the "Mill"). Under
the contract, the Company will earn a fee for processing the
alternate feed material and returning finished uranium product to
the generator of the feed material. The fee is expected to
cover the Company's processing cost and provide the Company with a
reasonable margin. As these additional quantities of
alternate feed material are covered by an existing license
amendment, no additional licensing actions will be required.
This will be a substantial project that was not previously
included in the Company's business plan and results in a new source
of revenue for 2017. The Company expects the net cash-flows
from the processing of this material to be consistent with past
arrangements. This new business is also expected to increase
the Company's uranium processing in 2017 above previously announced
guidance, although the uranium recovered will be for the account of
a 3rd party.
Located in southeast Utah, the
White Mesa Mill is the only licensed and operating conventional
uranium mill in the United States. The Mill is also one of
the only facilities in North
America licensed and equipped to process and recycle
alternate feed materials for the recovery of uranium.
Alternate feed materials are materials, other than conventional
ores, that contain recoverable quantities of natural uranium.
Since the 1990's, the Mill has processed a number of different
sources of alternate feed materials, and since 2005, has recovered
a total of approximately 1.5 million pounds of
U3O8 from those sources. This is an
important aspect of the Mill's business, especially during times of
low uranium prices.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "The Company's ability to process
alternate feed materials for the recovery of uranium at the White
Mesa Mill, including the fee processing arrangement we announced
today, is a very important aspect of the Company's business and
revenue stream. The White Mesa Mill is an excellent option
for entities that generate significant quantities of
uranium-bearing materials, since we are able to return value to
them in the form of marketable uranium. This new tranche of
material was not previously in our business plan, so the expected
cash-flows are timely for Energy Fuels during today's low uranium
prices. Finally, we are proud of our alternate feed business,
as we are recycling these feed sources and recovering natural
uranium which is used in the generation of clean, carbon-free
nuclear energy. The Company continues to aggressively pursue
additional alternate feed opportunities for the Mill, as an
integral part of our business."
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 ISR production center
with a licensed capacity of 2 million pounds of
U3O8 per year. Alta Mesa is an ISR production center currently
on care and maintenance. 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 in the U.S.; the
ability of the Company to successfully process this alternate feed
material; the significance and magnitude of the net cash-flows
expected to be received; whether or not the fees to be obtained
will cover the Company's processing costs and provide the Company
with a reasonable margin; the ability of the Company to process
this alternate feed material under an existing license amendment;
any increases in the Company's expected uranium production for
2017; the White Mesa Mill being one of the only facilities in
North America licensed and
equipped to process and recycle alternate feed materials; alternate
feed processing being an important aspect of the Company's business
and revenue; the ability of the White Mesa Mill to return value
from alternate feed materials in the form of marketable uranium;
the Company continuing to aggressively pursue additional alternate
feed opportunities for the Mill; 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 in the U.S.; the ability
of the Company to successfully process this alternate feed
material; the significance and magnitude of the net cash-flows
expected to be received; whether or not the fees to be obtained
will cover the Company's processing costs and provide the Company
with a reasonable margin; the ability of the Company to process
this alternate feed material under an existing license amendment;
any increases in the Company's expected uranium production for
2017; the White Mesa Mill being one of the only facilities in
North America licensed and
equipped to process and recycle alternate feed materials; alternate
feed processing being an important aspect of the Company's business
and revenue; the ability of the White Mesa Mill to return value
from alternate feed materials in the form of marketable uranium;
the Company continuing to aggressively pursue additional alternate
feed opportunities for the Mill; 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.