![]() The Transaction represents an exceptional return on investment for Energy Fuels, and the value metrics of the Transaction compare favorably against precedent transactions within the uranium sector. The Company also estimates that the sale of Alta Mesa will reduce Energy Fuels’ cash burn by approximately $2 million per year.Įnergy Fuels acquired Alta Mesa in 2016 for approximately $13.6 million of shares, and currently carries this project on its balance sheet at $8.2 million. Once the reclamation liabilities are transferred to enCore, Energy Fuels will be nearly 60% collateralized on its remaining reclamation obligations. Unless a block trade or similar distribution is executed by Energy Fuels to sell the enCore common shares underlying the Note, Energy Fuels will be limited to converting the Note into a maximum of $10 million principal amount of the Note per thirty (30) day period.įurthermore, enCore will assume all reclamation liabilities associated with Alta Mesa (approximately $10.3 million) and pay Energy Fuels the cash collateral on the existing reclamation bonds (approximately $3.6 million). The Note will be guaranteed by enCore Energy Corp., will be fully secured by Alta Mesa, and enCore will not be permitted to further encumber Alta Mesa with any third-party indebtedness, royalty or stream while the Note is outstanding. enCore is currently traded on the TSXV and has applied for a listing on the NASDAQ. ![]() The Note will be convertible at Energy Fuels’ election into enCore shares at a 20% premium to the 10-day volume-weighted average price of enCore shares ending the day before the closing. $60 million in a secured convertible note (the “Note”), payable in two years from the closing, bearing annual interest of eight percent (8%).The $120 million of total consideration will be paid by enCore to Energy Fuels as follows: Acquiring additional monazite supply to feed the Company’s rapidly growing REE business.Developing the Company’s Bahia heavy mineral sand and REE project in Brazil upon successful acquisition of the project and.Advancing the design, engineering and permitting of a planned, large “world significant” “Phase 2” crack-and-leach and “light” and “heavy” REE separation facility (up to 15,000 mT per year TREO capacity).“Phase 1” REE separation infrastructure (up to 2,500 – 5,000 MT per year TREO capacity, including 500 – 1,000 MT per year of NdPr oxide or oxalate expected) at the White Mesa Mill Financing the construction of “first to market” in the U.S.Establishing an “ore purchasing” program to secure additional feed to the White Mesa Mill, from others in the region as uranium mining picks up in the region, thereby maximizing the facility’s existing eight (8) million pounds per year licensed uranium production capacity and having sole ownership of this production.Accelerating the licensing and development of the Company’s larger-scale uranium mines, including the Sheep Mountain, Roca Honda, and/or Bullfrog projects, which together will add over five (5) million pounds of production capacity in the next several years.production capacity in order to fulfill commitments under existing and future long-term uranium supply agreements and as market conditions may warrant Ramping-up uranium production at one or more of the White Mesa Mill, the Nichols Ranch ISR Project, the Pinyon Plain mine, the La Sal Complex, and/or the Whirlwind mine which total up to two (2) million pounds of U3O8 per year of near-term, lower cost U.S.The Transaction is significant for the Company, as the cash received is expected to fully finance much of the Company’s uranium, REE, vanadium and medical isotope business plans for the next two to three years without diluting shareholders. ![]() The Transaction is expected to close by the end of 2022 or early 2023. producer of uranium and rare earth elements (“ REE“), is pleased to announce that it has entered into a definitive agreement to sell three wholly-owned subsidiaries that together hold Energy Fuels’ Alta Mesa ISR Project (“ Alta Mesa“) to enCore Energy (“ enCore“) for total consideration of $120 million (the “ Transaction“). Novem( Source) – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”), a leading U.S. ![]() Non-dilutive sale of asset expected to materially enhance Energy Fuels’ balance sheet and help to fund the rapid advancement and expansion of near-term U.S.
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