Acquisition intended to enhance Energy
Fuels' current capabilities and support announced plans for medical
isotope development.
LAKEWOOD, Colo., Aug. 19,
2024 /PRNewswire/ - Energy Fuels Inc. (NYSE
American: UUUU) (TSX: EFR) ("Energy Fuels"), an industry
leader in uranium and rare earth elements ("REE") production
for the energy transition, today announces the August 16, 2024 acquisition (the
"Acquisition") of RadTran LLC ("RadTran"), a private
company specializing in the separation of critical radioisotopes,
to further Energy Fuels' plans for development and
production of medical isotopes used in cancer treatments.
RadTran's expertise includes separation of radium-226
("Ra-226") and radium-228 ("Ra-228") from uranium and
thorium process streams. This strategic acquisition is expected to
significantly enhance Energy Fuels' planned capabilities to address
the global shortage of these essential isotopes used in emerging
targeted alpha therapies ("TAT") for cancer treatment.
Mark Chalmers, President and CEO
of Energy Fuels said, "With this Acquisition, we will be combining
our unique processing capabilities at the White Mesa Mill, the only
permitted and operating uranium mill in the United States, with over 40 years of
chemical and metal separations experience, with RadTran's
intellectual property and medical isotope experience in
radionuclide separation and concentration, which we believe will
position Energy Fuels to be a leader in this developing
industry.
"Additionally, what I find exciting about this initiative is
that Energy Fuels has the potential to recover valuable isotopes
from its existing process streams, thereby recycling back into the
market material that would otherwise be lost to disposal and
repurposing it for use in producing life-saving cancer
treatments.
"And our current R&D activities are being conducted using
existing Mill facilities without the need for capital improvements
of any significance. Capital development for future commercial
production capabilities, upon successful production at the R&D
level, would be expected to be supported by future offtake
agreements for radium production."
Since July 2021, Energy Fuels and
RadTran have been working under a Strategic Alliance Agreement to
evaluate the feasibility of recovering Ra-226 and Ra-228 from
existing uranium process streams at Energy Fuels' White Mesa Mill
in Utah (the "Mill").
Recovered Ra-226 and Ra-228 would be made
available to the pharmaceutical industry and
others to enable the production of actinium-225
("Ac-225"), lead-212 ("Pb-212") and potentially other
leading medically attractive TAT isotopes. These isotopes are
critical components in the development of targeted alpha therapies,
which offer promising new treatments for various cancers. The
global shortage of Ra-226 and Ra-228 currently presents itself as a
significant barrier to the advancement and commercialization of
these therapies.
Energy Fuels received regulatory approval and licensing in 2023
for the concentration of R&D quantities of Ra-226 at the
Mill and is currently completing engineering on its research
and development ("R&D") pilot facility for Ra-226
production. During 2024, Energy Fuels plans to set up the first
stages of the pilot facility and expects to produce R&D
quantities of Ra-226 for testing by end-users of the product. Upon
successful production of R&D quantities of Ra-226, Energy Fuels
plans to develop capabilities at the Mill for the commercial-scale
production of Ra-226 and potentially Ra-228 in 2026-2028,
conditional on completion of engineering design, securing
sufficient offtake agreements for final radium production, and
receipt of all required regulatory approvals.
Under the Acquisition, the purchase price payable by Energy
Fuels to the owners of RadTran consists of (all dollar amounts in
US$): (i) on closing, $1.5 million in
cash, $1.5 million in Energy Fuels
common shares ("Common Shares") and the grant of a 2%
royalty on future revenues from the sale of produced radium, as
well as certain other contractual commitments; and up to an
additional $14 million in cash and
Common Shares based on the satisfaction of a number of
performance-based milestones, including achieving initial
production, securing suitable offtake agreements to justify
commercial production and reaching commercial production.
In addition, as part of the Acquisition, Saleem Drera PhD,
President and CEO of RadTran, will join Energy Fuels as Vice
President of Radioisotopes, Radiological Systems, and Intellectual
Property. In this role, Dr. Drera will lead Energy Fuels' efforts
to integrate RadTran's proprietary technology, which includes a
number of patents, pending patents, trade secrets and know-how
relating to efficient separation of Ra-226 and Ra-228 from process
streams, and drive innovation in the production of medical
radioisotopes.
The demand for Ra-226 and Ra-228 is underscored by the extensive
clinical research currently underway. More than 30 clinical trials
are evaluating Ac-225, a product of Ra-226 and a crucial component
of targeted alpha therapies, highlighting the urgent need for
reliable isotope supply. Notably, several of these trials have
reached final pre-approval stage (phase 3) targeting neuroendocrine
tumors and leukemia, with many more earlier stage trials already
initiated to address common cancers including prostate cancer.
Critically, a shortfall in Ac-225 production (for which Ra-226
is the limiting raw material), is now delaying trials and
challenging the transition to full commercial and clinical
availability of these drugs. Energy Fuels intends to step in to
alleviate this supply bottleneck and support development of this
important new class of life-saving cancer therapies.
Saleem Drera, President and CEO
of RadTran, and now Vice President Radioisotopes, Radiological
Systems and Intellectual Property of Energy Fuels, said, "At
RadTran, we are proud to be a part of the Energy Fuels team.
The White Mesa Mill's facilities, permits and
licenses, and Energy Fuels' years of experience are
Ideally suited to employ RadTran's Technology. Furthermore, we have
been impressed with their successful endeavors to separate and
concentrate uranium, vanadium and rare earth elements in a manner
that adheres to the strictest standards of protection of human
health, safety and the environment."
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company.
The Company, as the leading producer of uranium in the United States, mines uranium and produces
natural uranium concentrates that are sold to major nuclear
utilities for the production of carbon-free nuclear energy. Energy
Fuels recently began production of advanced rare earth element
("REE") materials, including mixed REE carbonate in 2021,
and commenced production of commercial quantities of separated REEs
in 2024. Energy Fuels also produces vanadium from certain of its
projects, as market conditions warrant, and is evaluating the
recovery of radionuclides needed for emerging cancer treatments.
Its corporate offices are in Lakewood,
Colorado, near Denver, and
substantially all its assets and employees are in the United States. Energy Fuels holds two of
America's key uranium production centers: the White Mesa Mill in
Utah and the Nichols Ranch in-situ
recovery ("ISR") Project in Wyoming. The White Mesa Mill is the only
conventional uranium mill operating in the US today, has a licensed
capacity of over 8 million pounds of U3O8 per
year, and has the ability to produce vanadium when market
conditions warrant, as well as REE products, from various
uranium-bearing ores. The Nichols Ranch ISR Project is on standby
and has a licensed capacity of 2 million pounds of
U3O8 per year. The Company recently acquired
the Bahia Project in Brazil, which
is believed to have significant quantities of titanium (ilmenite
and rutile), zirconium (zircon) and REE (monazite) minerals. In
addition to the above production facilities, Energy Fuels also has
one of the largest NI 43-101 compliant uranium resource portfolios
in the US and several uranium and uranium/vanadium mining projects
on standby and in various stages of permitting and development. The
primary trading market for Energy Fuels' common shares is the NYSE
American under the trading symbol "UUUU," and the Company's common
shares are also listed on the Toronto Stock Exchange under the
trading symbol "EFR." Energy Fuels' website is
www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: This news release contains certain
"Forward Looking Information" and "Forward Looking Statements"
within the meaning of applicable United
States and Canadian securities legislation, which may
include, but are not limited to, statements with respect to: any
expectation that the Company will maintain its position as a
leading U.S.-based critical minerals company or as the leading
producer of uranium in the U.S.; any expectation that the Company
will complete engineering on its R&D pilot facility for the
production of Ra-226 at the Mill, will set up the first stage of
the pilot facility, and produce R&D quantities of Ra-226 at the
Mill for testing by end-users of the product or at all; any
expectation that the Company's evaluation of radioisotope recovery
at the Mill will be successful; any expectation that the potential
recovery of medical isotopes from any radioisotopes recovered at
the Mill will be feasible; any expectation that any radioisotopes
that can be recovered at the Mill will be sold on a commercial
basis; any expectation that the Acquisition will significantly
enhance Energy Fuels' capabilities to address the global shortage
of the essential isotopes used in emerging TAT cancer treatments;
any expectation that RadTran's technology will enable the efficient
separation of Ra-226 and Ra-228 from process streams, or will
transform them into valuable sources for medical use; any
expectation that the development of TAT therapies will be
successful or will offer promising new treatments for various
cancers; any expectation that Energy Fuels will be or become at the
forefront of the medical radioisotope supply chain; any expectation
that any additional licensing for the R&D or commercial
production of Ra-226, Ra-228 or any other radioisotopes at the Mill
will be obtained on a timely basis or at all; any expectation as to
the supply of or demand for Ra-226 and/or Ra-228 or any other
isotopes; any expectation as to the successful approval or the
timing of approval of any medical isotopes or TAT therapeutics; any
expectation that Energy Fuels will step in to alleviate any supply
bottlenecks or support development of TAT therapies; any
expectation that Energy Fuels will be a leader in the supply of
radioisotopes for TAT therapeutics; any expectation as to capital
requirements for Energy Fuels' R&D and potential commercial
radium production facilities; any expectation that future capital
requirements will be supported by offtake agreements for radium
production; and any expectation that Energy Fuels' operations will
be or continue to be performed in a manner that adheres to the
strictest standards for protection of human health, safety and the
environment. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans," "expects," "does not expect," "is expected," "is likely,"
"budgets," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," "does not anticipate," or "believes," or variations
of such words and phrases, or state that certain actions, events or
results "may," "could," "would," "might" or "will be taken,"
"occur," "be achieved" or "have the potential to." All statements,
other than statements of historical fact, herein are considered to
be forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements include risks associated with: commodity
prices and price fluctuations; engineering, construction,
processing and mining difficulties, upsets and delays; permitting
and licensing requirements and delays; changes to regulatory
requirements; legal challenges; the availability of feed sources
for the Mill; competition from other producers; public opinion;
government and political actions; market factors, including future
demand for radium; the ability of the Mill to recover radium or
other radioisotopes at reasonable costs or at all; market prices
and demand for medical isotopes; and the other factors described
under the caption "Risk Factors" in the Company's most recently
filed Annual Report on Form 10-K, which is available for review on
EDGAR at www.sec.gov/edgar, on SEDAR+ at
www.sedarplus.ca, and on the Company's website at
www.energyfuels.com. Forward-looking statements contained
herein are made as of the date of this news release, and the
Company disclaims, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. The Company assumes no obligation to
update the information in this communication, except as otherwise
required by law.
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SOURCE Energy Fuels Inc.