LAKEWOOD, CO, Sept. 15, 2016 /CNW/ - Energy Fuels Inc.
(NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company") is
pleased to announce that due to increased demand, it has entered
into an amended and restated underwriting agreement (as amended and
restated, the "Underwriting Agreement") with a syndicate of
underwriters led by Cantor Fitzgerald Canada Corporation and Rodman
& Renshaw a unit of H.C.
Wainwright & Co., LLC, acting as co-lead underwriters
and joint book-running managers, to increase the size of the
previously announced bought deal to US$13,050,000. Pursuant to the
Underwriting Agreement, the underwriters have agreed to buy on a
bought deal, underwritten basis 7,250,000 units (the
"Units") at a price of US$1.80 per Unit for gross proceeds of
US$13,050,000 (the
"Offering"). As previously announced, each Unit
consists of one common share (each a "Share") and one half
of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant will be exercisable for five
years following the closing date and will entitle the holder
thereof to acquire one Share upon exercise at an exercise price of
US$2.45 per Share. The Company
has applied to list the Warrants on the Toronto Stock Exchange (the
"TSX"), though listing will be subject to the Company
fulfilling all of the listing requirements of the TSX. The
Company intends to list the Warrants on the NYSE MKT within 90 days
of the closing of the Offering, subject to the Company fulfilling
all of the listing requirements of the NYSE MKT. The Company
has granted the underwriters an option, exercisable at the offering
price at any time prior to 5:00 p.m.
(Toronto time) on the day that is
the 30th day following the closing date of the Offering,
to purchase up to an additional 15% of the base Units offered in
the Offering (which may be exercised for Units, Shares, Warrants or
a combination thereof) to cover over-allotments, if any, and for
market stabilization purposes. The Offering is expected to
close on or about September 20, 2016,
subject to obtaining customary TSX and NYSE MKT approvals.
As previously announced, the Company intends to use the net
proceeds of the Offering (i) to continue to finance the previously
announced shaft sinking and evaluation at the Company's high-grade
Canyon mine project in Arizona;
(ii) to continue to fund wellfield construction at the Company's
Nichols Ranch Project in Wyoming;
(iii) to continue permitting of the Company's projects, including
Roca Honda and Jane Dough; (iv) to
repay principal on outstanding indebtedness; and (v) for general
corporate needs and working capital requirements. However,
management of Energy Fuels will have discretion with respect to the
actual use of the net proceeds of the Offering and there may be
circumstances where, for sound business reasons, a reallocation of
the net proceeds is necessary.
The Company intends to file a final prospectus supplement (the
"Supplement") in both Canada and the
United States to its Canadian short form base shelf
prospectus (the "Canadian Base Prospectus") dated
June 14, 2016 and its U.S. shelf
registration statement on Form S-3 (the "Registration
Statement") which was declared effective on May 5,
2016. Before investing, you should read the prospectus in
both the Canadian Base Prospectus as well as in the Registration
Statement and other documents the Company has filed with the United
States Securities and Exchange Commission and the Canadian
Securities regulators for more complete information about the
Company and this offering. Copies of the Supplement and the
Underwriting Agreement will be, and the Canadian Base Prospectus
and the Registration Statement are, available for free by visiting
the Company's profiles on SEDAR at www.sedar.com or EDGAR at
www.sec.gov/edgar.shtml, as applicable. Alternatively,
investors may ask the underwriters or the Company to send them the
Supplement, when available, the Canadian Base Prospectus and/or the
base prospectus contained in the Registration Statement by
contacting Cantor Fitzgerald Canada Corporation, attention: Equity
Capital Markets, 181 University Avenue, Suite 1500, Toronto,
ON, M5H 3M7, email: mailto:ecmcanada@cantor.com or Rodman
& Renshaw a unit of H.C. Wainwright & Co., LLC,
430 Park Avenue, New York, NY 10022,
email: placements@hcwco.com, or the Company's Investor
Relations department at (303) 974-2140.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of,
Units, Warrants or Shares in any state or province in which such
offer, solicitation or sale would be unlawful, prior to
registration or qualification under the securities laws of any such
state, province, or other jurisdiction.
The Company intends to rely on the exemption set forth in
Section 602.1 of the TSX Company Manual which provides that the TSX
will not apply certain of its requirements to issuers whose shares
are listed on another recognized stock exchange such as the NYSE
MKT.
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 in situ recovery ("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's common shares are
listed on the NYSE MKT under the trading symbol "UUUU", and on the
TSX under the trading symbol "EFR".
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains certain "Forward-Looking
Information" and "Forward Looking Statements" within the meaning of
applicable Canadian and United
States securities legislation, which may include, but is not
limited to, statements with respect to the expected closing date of
the Offering, the timing for listing of the Warrants on the NYSE
MKT and the TSX, and the use of proceeds from the Offering.
These forward-looking statements can be identified by the use of
forward-looking terminology such as "intends", "may," "will,"
"plans," "believes," "anticipates," "expects," "estimates,"
"predicts," "potential," "continue," "opportunity," "goals," or
"should". 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 closing date of
the Offering (if any) or the use of proceeds from the Offering to
be different from those expressed by the forward-looking
statements. Factors that could cause such events to differ
from those anticipated in these forward-looking statements include
risks associated with: the Company's ability to satisfy the
conditions to closing of the Offering and to use the proceeds from
the Offering as expected, the ability to satisfy the requirements
to list the Warrants on the NYSE MKT and the TSX, which could be
affected by many of the risks described under the caption "Risk
Factors" in the Company's Annual Information Form dated
March 15, 2016, which is available
for review on SEDAR at www.sedar.com, and its Annual Report on Form
10-K, which is available for review on EDGAR at
www.sec.gov/edgar.shtmland in the Supplement dated the date
hereof and which will be available for review on SEDAR and EDGAR
shortly. 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.
SOURCE Energy Fuels Inc.