Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced that it currently expects to complete the acquisition of Mesteña Uranium, LLC on or before Thursday, June 16, 2016, subject only to final approval for the transfer of its Radioactive Materials License by the Texas Commission on Environmental Quality, which is expected sometime this week.
As quoted in the press release:
Energy Fuels’ acquisition of Mesteña is expected to further cement Energy Fuels’ position as the dominant integrated uranium producer in the U.S., especially now that Cameco has announced that it is reducing production in the U.S. Mesteña’s Alta Mesa Project is a fully-permitted and constructed ISR operation and processing facility, with a well-established track record of lower cost uranium production, which will diversify Energy Fuels’ operations into a third production center, along with the Nichols Ranch ISR Project (Wyoming) and the White Mesa Mill (Utah). Alta Mesa is currently on standby and ready to resume production, as market conditions warrant, and it can reach commercial production levels with limited required capital within six months of a production decision. Mesteña also controls a large land package totaling 195,501 contiguous acres, including 4,575-acres currently under a lease and mining permit and 190,926-acres under a lease-option and exploration/testing permit. Mesteña also has extensive exploration results across the area that have identified significant uranium resources that Energy Fuels expects can be recovered at lower costs, as market conditions warrant. Between Alta Mesa, Nichols Ranch, and the White Mesa Mill, Energy Fuels’ licensed processing capacity will exceed 11.5 million pounds of uranium per year.
Energy Fuels President and CEO, Stephen P. Antony, stated:
Energy Fuels looks forward to completing our acquisition of Mesteña and its lower-cost ISR uranium production which is economic at today’s quoted term prices. Although the long-term fundamentals for the uranium sector are as strong as ever, it is critical for us to lower all-in costs of production in today’s weak uranium price environment. In addition to other cost-cutting and cash conservation efforts we are actively pursuing, our acquisition of Mesteña is expected to move Energy Fuels down the cost curve which will allow us to increase production sooner and at lower uranium prices.
I have had the pleasure of meeting with the Mesteña shareholders recently, and they have expressed their enthusiasm for closing this transaction and becoming shareholders in the Company. We will be very excited to welcome them as shareholders on the expected completion of this acquisition, and to see the future development of the Alta Mesa project and other Mesteña assets.
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