Filed pursuant to Rule 433
Registration Statement No. 333-210782
Issuer Free Writing Prospectus dated December 23, 2016
Relating to Prospectus supplement dated December 23, 2016
Energy Fuels Announces Improved Project
Economics for its 100%-
Owned Roca Honda Project;
Reestablishes ATM Program
Lakewood, Colorado December 23, 2016
Energy Fuels Inc. (NYSE MKT:UUUU; TSX:EFR) (Energy Fuels
or the Company)
, a leading producer of uranium in the United States,
is pleased toannounce that today the Company expects to file an updated
Preliminary Economic Assessment (the PEA), which has been prepared in
accordance with National Instrument 43-101 Standards of Disclosure for
Mineral Projects (NI 43-101), for its 100%-owned Roca Honda Project (Roca
Honda). All references to dollars in this press release are references to US
dollars.
Roca Honda is one of the largest and highest grade uranium
projects in the U.S. It is located in northwest New Mexico, adjacent to the
Mount Taylor Mine, which is a large, developed, high-grade uranium mine held by
a wholly-owned subsidiary of San Diego-based General Atomics. The Company is
currently in the process of permitting Roca Honda, so that it can be ready for
development in improved market conditions. Due to Roca Hondas proximity to the
Companys 100%-owned White Mesa Mill, the uranium to be mined at the project is
expected to be trucked to the Companys mill to be processed and concentrated
into finished uranium product that will be sold into the global nuclear energy
market. The White Mesa Mill is the only fully-licensed and operating
conventional uranium mill in the U.S. today.
The new PEA primarily reflects an update to Roca Hondas
ownership status based on: (i) the Companys acquisition of 4,580-acres of
adjacent properties in August of 2015, and (ii) the Companys acquisition of the
40% ownership interest of the Companys former joint venture partner in May of
2016, thereby increasing the Companys ownership in the Project to 100%.
The PEA is entitled Technical Report on the Roca Honda
Project, McKinley County, State of New Mexico, USA and is dated October 27,
2016. The qualified persons who authored the Technical Report are Stuart E.
Collins, P.E., Robert L. Michaud, P.Eng., Mark B. Mathisen, C.P.G., each of
Roscoe Postle Associates Inc., and Harold R. Roberts, P.E., Executive VP of the
Company. The Technical Report will be filed on SEDAR and will be available under
the Companys profile at www.sedar.com.
In comparing the new PEA with the previous one dated February
27, 2015, the project economics have improved, including estimated operating
costs dropping by 11% to $33.27 per pound of uranium. The PEA also demonstrates
that Roca Honda is expected to have a 9-year production life with an average
annual production rate of 2.6 million pounds of uranium per year. The first year
of production is expected to total 1.4 million pounds of uranium, followed by an
average rate of production of 2.8 million pounds of uranium per year thereafter.
Life-of-mine capital costs (including upfront capital, sustaining capital, and
closure & reclamation) are expected to total $13.88 per pound of
uranium.
The mineral resource estimate for the project is unchanged from
the previous February 27, 2015 report, including 1.51 million tons of Measured
and Indicated Mineral Resources with an average grade of 0.48%
e
U
3
O
8
containing
14.6 million pounds of uranium. Roca Honda is also estimated to contain 1.20 million tons of Inferred Mineral
Resources with an average grade of 0.47% e
U
3
O
8
containing 11.2 million pounds of uranium.
1
As previously disclosed in the Companys May 28, 2015 news
release, there is an existing, partially-sunk mine shaft located on the project
which was constructed by Kerr-McGee in 1982 to a depth of 1,478-feet. The
Company expects to evaluate whether this shaft can be utilized. In addition, the
PEA describes a significant historical uranium estimate for the project that is
not included in the current NI 43-101-compliant resource estimates described
above. Because the Company continues to pursue significant cost-saving
initiatives in todays low uranium price environment, the additional work to
convert these historical estimates into current NI 43-101-compliant mineral
resources has not been completed. These historical estimates are not equivalent
to current mineral resources or mineral reserves as defined in NI 43-101. The
historical estimates should not be relied upon, but are considered relevant as
strong potential exists to add resources to the project, and if confirmed, such
resources could be important in the early stages of the project life and cash
flow.
Key assumptions and parameters used in the economic analysis
contained in the PEA include the following: mining at an average rate of 1,090
tons per day, utilizing the Companys White Mesa Mill for processing (which the
PEA notes is a viable uranium mill and has all the necessary impoundment
structures), a sales price of $65 per pound, a $45 million (16%) capital cost
contingency, and no mining of historical resources. These key assumptions and
parameters used in the economic analysis are considered reasonable for economic
extraction of the resources for Roca Honda. Readers should note that the Mineral
Resources disclosed above are not Mineral Reserves, and therefore do not have
demonstrated economic viability. In addition, this PEA is preliminary in nature;
it includes Inferred Mineral Resources that are considered too speculative
geologically to have economic considerations applied to them that would enable
them to be categorized as Mineral Reserves; and there is no certainty that the
economic analysis will be realized.
Key assumptions and parameters used in determining the
Mineral Resources contained in the PEA, include the following: a minimum grade
cut-off of 0.19% U
3
O
8
, a minimum mining thickness
of six feet, $241 per ton of operating cost, 95% recovery at the White Mesa
Mill, and no environmental, permitting, legal, title, taxation, socioeconomic,
marketing, political, or other relevant factors that could materially affect the
Mineral Resource estimate. Data verification for the Mineral Resources estimate
was completed by RPA (2010-2011, and 2016) and by Fitch (2004). The data
verification performed by RPA in 2010-2011, included a site visit, review of
historical plans and sections, review of geological reports, review of
historical and more recent drill hole logs, review of survey records, review of
core logging and sampling procedures, spot checks of property boundary
markers and drill hole collar locations, independent checks of counts
per second (cps) of selected drill core samples, made comparisons of the drill
hole data base to historical records, and a discussion with Fitch (author of the
2006, 2008, and 2010 Technical Reports). No significant discrepancies were
encountered.
The Company is also pleased to announce that it has filed a
prospectus supplement to its effective U.S. registration statement on Form S-3
in order to reestablish its at-the-market program (ATM). Concurrently, the
Company has entered into a sales agreement with Cantor Fitzgerald & Co.
pursuant to which the Company may, at its discretion from time to time, sell up
to $20 million of common shares, with sales only being made on the NYSE MKT at
then-prevailing market prices. The ATM is substantially similar to the one the
Company utilized to raise $3.39 million of cash from September 29, 2015 to March
15, 2016. The prospectus supplement and the accompanying base prospectus
relating to this offering have been filed with the U.S. Securities and Exchange Commission (SEC) and is
available on the SECs website at
www.sec.gov
.
Copies of the prospectus supplement and the accompanying base prospectus
relating to this offering, when available, may be obtained from Cantor
Fitzgerald & Co., Attention: Equity Capital Markets, 110 East 59
th
Street, New York, New York, 10022, telephone: (212) 829-7122.
2
In the event the ATM is utilized, the Company intends to use
the net proceeds to provide the Company with additional financial
flexibility and enhanced options with respect to any or all of the following:
(i) to continue to finance the evaluation of the high-grade uranium and copper
mineralization and the previously announced shaft-sinking at the Companys
Canyon mine project in Arizona; (ii) to fund wellfield construction at the
Companys Nichols Ranch ISR Project in Wyoming, as market conditions warrant;
(iii) to continue permitting of the Companys projects, including Roca Honda and
Jane Dough; (iv) to repay principal on outstanding indebtedness; and/or (v) for
general corporate needs and working capital requirements.
About Energy Fuels:
Energy Fuels is a
leading integrated US-based uranium mining company, supplying
U
3
O
8
to major nuclear utilities. Energy Fuels holds three
of Americas 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
U
3
O
8
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 also produces vanadium as a co-product of its uranium
production from certain of its mines on the Colorado Plateau, as market
conditions warrant. The Companys 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 expected filing of the PEA; Roca Honda being one of the largest and
highest-grade uranium projects in the U.S.; the status of permitting at Roca
Honda and the expectation that the Roca Honda Project can be ready for
development if market conditions improve; any expectations about improvements in
market conditions; the expected processing of resources mined at Roca Honda at
the White Mesa Mill; the results of the resource estimate and economic analysis
in the PEA including its conclusions and assumptions; the successful utilization
of the ATM; the use of proceeds for the ATM; 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 expected filing
of the PEA; Roca Honda being one of the largest and highest-grade uranium
projects in the U.S.; the status of permitting at Roca Honda and the expectation
that the Roca Honda Project can be ready for development if market conditions
improve; any expectations about improvements in market conditions; the expected
processing of resources mined at Roca Honda at the White Mesa Mill; the results
of the resource estimate and economic analysis in the PEA including its
conclusions and assumptions; the successful utilization of the ATM; the use of
proceeds for the ATM; 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.
3
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 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
Companys Annual Report on Form 10-K dated March 15, 2016 for further details.
Energy Fuels Inc.
Curtis Moore VP Marketing
& Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125
investorinfo@energyfuels.com
www.energyfuels.com
4
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