Energy Fuels Signs Definitive Joint Venture Agreement with Mesa Uranium, Advances Whirlwind BLM Permit, and Extends Warrants
22 May 2008 - 10:30PM
Marketwired
TORONTO, ONTARIO -
Mesa Uranium Joint Venture
Energy Fuels and Mesa Uranium are pleased to announce that the
companies have signed a definitive agreement (following the
announcement of the Letter of Intent released in a June 5, 2007
news release) to form an exploration joint venture, West Lisbon JV,
LLC ("West Lisbon"). West Lisbon was formed to explore the DAR
property in the Lisbon Valley Mining District of San Juan County,
Utah, and supports the Energy Fuels strategy of expanding existing
mines and defined resources with nearby, accessible potential
uranium resource properties. The northern boundary of the DAR
property is located approximately two miles south of Energy Fuels'
Energy Queen Mine which is currently being refurbished in
preparation for production.
As previously released, the DAR property consists of 60 recently
staked mining claims (approximately 1,240 acres) located one mile
west of the North Alice Mine and is on trend with historic uranium
mines in the Lisbon Valley District. The property is in a
geologically similar environment and on trend with thick
mineralization recently announced by Vane Minerals in a press
release dated 11/16/2007. Vane's best intercepts ranged between 6.5
and 16.5 feet thick, and graded between 0.14% and 0.22% eU3O8.
West Lisbon contemplates a 50-50 shared expenditure agreement to
conduct exploration drilling on the DAR property. Previous
exploration work in the 1980's by Energy Fuels Nuclear, Inc.
identified strong uranium mineralization in several drill holes.
Energy Fuels will be the operator of West Lisbon and will conduct
the initial exploration work consisting of permitting and drilling.
Should an economic uranium deposit be discovered on the claims held
by West Lisbon, Energy Fuels will operate all mines that are
developed.
Whirlwind Mine BLM Permit Progress
Energy Fuels moved closer to being fully permitted at the
Whirlwind Mine. An Environmental Assessment prepared by a third
party consultant to evaluate the environmental impacts of the
proposed Whirlwind mining plan was approved by the US Bureau of
Land Management (BLM) on May 15, 2008, and is now out for public
comment. The public will have until June 20, 2008, to review and
offer comments on the document. After the close of the public
comment period, the BLM will review the comments received. Energy
Fuels anticipates approval of the Whirlwind Mine plan of operations
by the BLM in July, 2008.
Warrant Extension
Energy Fuels has elected, through a resolution of its Board of
Directors, to extend the expiry date of 5,687,637 issued and
outstanding warrants of the Company (the "Warrants") from 5:00 p.m.
(Toronto time) on June 14, 2008 to 5:00 p.m. (Toronto time) on June
14, 2009. The Warrants were issued December 14, 2006. Each Warrant
entitles its holder to purchase one common share in the capital of
the Company at a price of $2.20 per share. 76,465 of the Warrants
are held by insiders of the Company ("Insider Warrants") and the
balance of the Warrants is held by parties at arm's length to the
Company.
The effective date of the amendment to the term of the Warrants
held by arm's length parties will be on the tenth business day
following the issuance of this press release. The Insider Warrants
may not be exercised after 5:00 p.m. on June 14, 2008 until the
amendments to the Insider Warrants are approved by the holders of a
majority of the voting shares of the Company at its next meeting of
the shareholders, excluding votes cast by, or on behalf of, the
insiders whose Warrants are proposed to be amended ("Shareholder
Approval"). The amendment to the term of Insider Warrants will be
effective once Shareholder Approval is obtained. The Company
expects to seek Shareholder Approval of the amendment to the
Insider Warrants at its next annual meeting of the shareholders,
which is anticipated to be held in early 2009.
The amendment to the term of the Warrants has been approved by
the Toronto Stock Exchange, subject to certain conditions,
including obtaining the Shareholder Approval described above with
respect to the Insider Warrants, filing of certain documents with
the Toronto Stock Exchange and the issuance of this press
release.
Stephen P. Antony, P.E., a Qualified Person as defined by
National Instrument 43-101 has reviewed and approved the content of
this press release.
About Energy Fuels
Energy Fuels Inc. is a Toronto-based uranium and vanadium
mineral exploration and development company actively rehabilitating
and developing formerly producing mines. With more than 40,000
acres of highly prospective uranium and vanadium property located
in the states of Colorado, Utah and Arizona, Energy Fuels has a
full pipeline of additional development prospects. Energy Fuels,
through its wholly-owned Colorado subsidiary, Energy Fuels
Resources Corporation, has assembled this property portfolio along
with a first class management team, including highly skilled
technical mining and milling professionals based in Lakewood and
Nucla, Colorado and Kanab, Utah.
Cautionary Statement
This news release contains certain "Forward-Looking Statements"
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended and "Forward Looking Information"
within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward-looking statements and forward looking
information that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations
are disclosed in the Company's documents filed from time to time
with the British Columbia, Alberta and Ontario Securities
Commissions.
George E.L. Glasier, President & CEO
Contacts: Energy Fuels Inc Gary Steele Investor Relations (303)
974-2147 or Toll free: 1-888-864-2125 Email:
investorinfo@energyfuels.com Website: www.energyfuels.com
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