LAKEWOOD, CO, Aug. 4, 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 the holders of its
floating-rate convertible unsecured subordinated debentures (the
"Debentures") approved the previously announced amendments (the
"Amendments") to the Debentures at a special meeting of the holders
of the Debentures (the "Debentureholders") held today.
As previously announced, the Amendments will result in the
following changes to the Debentures:
- Extend the maturity date of the Debentures from June 30, 2017 to December
31, 2020;
- Reduce the conversion price of the Debentures from Cdn$15.00 to Cdn$4.15 per common share of the
Company;
- Add a redemption provision that enables the Company to redeem
the Debentures upon providing not less than 30-days' notice, in
cash, in whole or in part, at any time after June 30, 2019, but prior to maturity, at a price
of 101% of the aggregate principal amount redeemed;
- Add a right in favor of each Debentureholder to enable the
Debentureholder to require the Company to purchase, for cash, on
June 30, 2017 up to 20% of the
Debentures held by the Debentureholder at a price equal to 100% of
the principal amount purchased;
- Provide a consent fee to each Debentureholder who voted in
favor of the Amendments in the amount of Cdn$20.00 per Cdn$1,000 of principal amount of Debentures held;
and
- Make other amendments to the indenture as required by the U.S.
Trust Indenture Act of 1939, along with certain other amendments to
remove provisions of the indenture that no longer apply.
The Amendments will apply to all outstanding Debentures.
Following today's special meeting of the Debentureholders, Energy
Fuels entered into an amended and restated convertible debenture
indenture (the "Amended Indenture") with BNY Trust Company of
Canada and The Bank of New York
Mellon.
Stephen P. Antony, President and
CEO of Energy Fuels commented: "We are very pleased with the
results of today's special meeting, whereby the Debentureholders
approved amendments to Energy Fuels' Debentures. The
extension of the maturity date will provide the Company with
additional financial flexibility for execution of our business plan
and optimally position the Company for a recovering uranium
market. In addition, the extension removes the specter of
potential shareholder dilution which may have resulted if the
Company redeemed the Debentures in shares on the previous maturity
date of June 30, 2017. We thank
the Debentureholders who voted in favor of the Amendments and look
forward to an improving uranium market benefitting both the
Debentureholders and our common shareholders."
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 standby. 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". The Company's
Debentures are listed on the Toronto Stock Exchange under the
trading symbol "EFR.DB."
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
effective date of the Amendments; any expected benefits
associated with the Amendments; financial flexibility afforded to
the Company by the Amendments; the Company's expectations of
improving uranium markets; the potential for future shareholder
dilution resulting from the redemption of the Debentures in
shares; 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
effective date of the Amendments; any expected benefits
associated with the Amendments; financial flexibility afforded to
the Company by the Amendments; the Company's expectations of
improving uranium markets; the potential for future shareholder
dilution resulting from the redemption of the Debentures in
shares; 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.