LAKEWOOD, CO, Nov. 2, 2017 /CNW/ - Energy Fuels Inc. (NYSE
American: 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 an
agreement to sell certain non-core uranium properties in
Wyoming to Uranium Energy Corp.
("UEC") for $5.39 million, including
$2.94 million of cash and
$2.45 million of shares in UEC that
will be priced upon the closing of the transaction.
The disposed properties are adjacent to the Reno Creek Project,
recently acquired by UEC. The Company considers these properties to
be non-core to its current and future uranium recovery operations.
As a standalone project, these properties would require extensive
permitting and licensing work, and significant time and capital,
for Energy Fuels to bring them into commercial operation in the
future. Therefore, they are much better suited to be combined with
UEC's Reno Creek Project. In addition, the Company holds
significant low cost ISR uranium assets that are currently
producing or that can be brought into production in Wyoming much sooner, including the operating
and fully-permitted Nichols Ranch ISR Project, and the
fully-permitted Jane Dough and Hank properties. The Company also
holds significant low cost ISR uranium resources and assets at the
fully-constructed, licensed and permitted Alta Mesa ISR Project in
South Texas. The disposed
properties are estimated to contain 3.8 million tons of Measured
and Indicated Mineral Resources with an average grade of 0.06%
eU3O8 containing approximately 4.3 million
pounds of uranium. This sale will not impact Energy Fuels' higher
grade Nichols Ranch, Jane Dough, Hank, West North Butte, North
Rolling Pin, and the Arkose Mining Venture ISR properties. In
aggregate those properties hold 4.6 million tons of Measured and
Indicated Mineral Resources with an average grade of 0.12%
eU3O8 containing approximately 10.7 million
pounds of uranium, along with an additional 3.4 million tons of
Inferred Mineral Resources with an average grade of 0.10%
eU3O8 containing 7.1 million pounds of
uranium.
Stephen P. Antony, CEO of Energy
Fuels stated: "At a time when companies are experiencing weak
uranium markets, we are pleased to realize significant value from
non-core uranium properties that are not a part of Energy Fuels'
long-term business plan. The proceeds from the sale will
significantly enhance our working capital position, and we look
forward to closing this transaction. "
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 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
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.
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 time to complete the transaction; the Company's
expectations regarding permitting and construction of uranium
recovery operations on the disposed properties; the Company's
belief that the Nichols Ranch and Alta Mesa ISR Projects are low
cost; the resource estimates on the disposed and retained
properties; 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 time to complete the transaction; the Company's
expectations regarding permitting and construction of uranium
recovery operations on the disposed properties; the Company's
belief that the Nichols Ranch and Alta Mesa ISR Projects are low
cost; the resource estimates on the disposed and retained
properties; 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 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 Annual
Report on Form 10-K dated March 15,
2016 for further details.
SOURCE Energy Fuels Inc.