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Uranium and Vanadium Producer Announces Acquisition of Project Royalties

The company also announces it will retire $8.3 million bond debt.

Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American), a producer of uranium and vanadium in the U.S., announced that it has completed the previously announced acquisition from Excalibur Industries of royalties on the company’s 100%-owned Nichols Ranch in situ recovery (ISR) project in Wyoming.

The company also acquired royalties on several operating, standby and advanced-stage ISR projects in Wyoming owned and operated by Power Resources Inc., a wholly owned subsidiary of Cameco Corporation, the company said in a press release.

“The Company has also provided the State of Wyoming with a notice of its intent to repay and retire its Wyoming Industrial Development Revenue Bond (“Wyoming Debt”), which has a balance of $8.3 million as of the date of this release,” the company stated. “On Monday, the company acquired a six percent to eight percent sliding-scale gross proceeds production royalty on its Nichols Ranch, Hank and Doughstick properties. (Doughstick is a part of the Company’s Jane Dough Project expansion area).”

The royalty applies also to the nearby Niles Ranch, Willow Creek and Verna Ann properties, which are important pipeline uranium properties also owned by the company.

“Acquisition of this royalty is expected to significantly decrease the company’s cost of production at Nichols Ranch. Energy Fuels also acquired the four percent gross proceeds production royalty on Cameco’s North Butte/Brown Ranch Project (“North Butte”), the Ruby Ranch Project, and the Greasewood property,” stated Energy Fuels.

North Butte is a fully permitted and operational project that has been operated by Cameco as a satellite to its Smith Ranch-Highland in situ recovery project since 2013. In November 2017, the company announced that the transaction would occur by way of a merger of Excalibur with an Energy Fuels subsidiary, but the parties agreed instead to structure the transaction as a purchase of assets.

“At the closing today, the Company delivered to Excalibur 995,619 common shares of Energy Fuels having a total value of $2.9 Million, which were priced at $3.26 per share based on the volume-weighted average price (“VWAP”) of Energy Fuels’ shares on the American NYSE for the five trading days ending on August 13, 2018, as well as approximately $25,000 cash for all accrued but unpaid royalties owing to Excalibur at the time of the closing,” noted the company.

In addition, Energy Fuels is holding back another 107,221 common shares having a total value of $350,000, which, pending the satisfaction of certain conditions, will be released to Excalibur six months following the date of closing.

“These shares were likewise priced at $3.26 per share based on the VWAP of Energy Fuels’ shares on the NYSE American for the five trading days ending on August 13, 2018,” the company stated.

On Aug. 10, 2018, the company gave notice to the State of Wyoming that it intends to retire the entire outstanding principal balance of its Wyoming Debt within the next 30–60 days. The Wyoming Debt, which is secured by the company’s Nichols Ranch Project, currently has a principal balance of $8.3 million.


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