LAKEWOOD, CO, Nov. 25, 2015 /CNW/ - Energy Fuels Inc. (NYSE
MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company") is pleased
to announce that it has entered into a definitive agreement to sell
a package of non-core uranium assets to enCore Energy Corp.
(TSX.V:UE) ("enCore") and Tigris Uranium U.S. Corp., including
unpatented mining claims and leases known as the Marquez and Nose
Rock projects in New Mexico, the
Moonshine project in Arizona, and
the Cedar Mountain, Geitus, Blue Jay, and Marcy Look projects in Utah (the "Properties"). Disposition of
the Properties is a part of Energy Fuels' continuing asset
rationalization strategy that cuts holding, permitting, and
corporate costs and allows the Company to focus on its higher
quality uranium assets.
The consideration to be received by Energy Fuels for the sale of
the Properties totals (i) cash of $329,960, and (ii) 14,250,000 common shares of
enCore. At closing, Energy Fuels will own 19.9% of the issued
and outstanding shares of enCore and hold a seat on enCore's board
of directors. Finally, enCore will assume all liabilities on
the Properties, including all debts, obligations and environmental
claims.
Energy Fuels is disposing of these Properties as they do not fit
into the Company's long-term production plans, due to their lower
relative grades and various other technical and economic
considerations. Energy Fuels' current focus is on projects at
the lower-end of the Company's cost curve, including the Nichols
Ranch ISR project, the permitted Hank ISR project, the
near-permitted Jane Dough ISR project, the high-grade Canyon mine,
the alternate feed material business at the White Mesa Mill, and
the larger-scale Roca Honda, Sheep
Mountain, and Henry Mountains conventional projects.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "Energy Fuels is pleased to
continue our asset rationalization strategy by selling certain of
our non-core assets to enCore Energy, and I believe this deal makes
good sense for both companies. Energy Fuels is focusing on
higher-grade, lower-cost and larger-scale uranium projects, while
we continue to cut costs and monetize assets that do not fit our
long-term business plans. We are also receiving shares of
enCore Energy, a company that we believe has the ability to
potentially unlock the value of the assets we are selling.
enCore has a strong management and technical team with an excellent
track-record of advancing projects in the U.S., and our ownership
in enCore will provide our shareholders with a vehicle to realize
the potential value of these assets."
About Energy Fuels: Energy Fuels is a
leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels operates two of America's key uranium production centers, the
White Mesa Mill in Utah and the
Nichols Ranch Processing Facility in Wyoming. 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, acquired in the Company's acquisition of
Uranerz Energy Corporation, is an in situ recovery ("ISR")
production center with a licensed capacity of 2 million pounds of
U3O8 per year. 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 two producing mines, 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 closing of the sale of non-core
assets, the Company's long-term business plans and focus on
projects in the lower end of the Company's cost curve including the
Nichols Ranch project, the Canyon mine, and the alternate feed
material business, enCore's ability to unlock value and its future
prospects, 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: the closing of the sale
of non-core assets, the Company's long-term business plans and
focus on projects in the lower end of the Company's cost curve
including the Nichols Ranch project, the Canyon mine, and the
alternate feed material business, enCore's ability to unlock value
and its future prospects; and other risk factors as described in
Energy Fuels' most recent annual information forms and annual 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.