TORONTO, ONTARIO--(Marketwire
- Feb. 28, 2011) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES
Energy Fuels Inc. (TSX:EFR) ("Energy Fuels" or the
"Company"), an advanced uranium and vanadium development
company, announced today that it has filed a preliminary short form
prospectus in connection with a best efforts offering (the
"Offering") of units (each, a "Unit") in the
capital of Energy Fuels. Each Unit consists of one common share (a
"Common Share") of the Company and one-half of one Common
Share purchase warrant (each whole warrant, a "Warrant"). The
Offering is being made through a syndicate of agents led by Dundee
Securities Ltd. and including Haywood Securities Inc., Scotia Capital
Inc., Versant Partners Inc., Cormark
Securities Inc. and Toll Cross Securities Inc. (collectively, the
"Agents"). The Company has granted an over-allotment option
(the "Over-Allotment Option") to the Agents, pursuant to
which the Agents may purchase, for a period of 30 days following the
closing of this Offering, additional Units (the "Over-Allotment
Units"), in a maximum number equal to 15% of the number of Units
sold pursuant to the Offering.
Final pricing and determination of the number of Units to be sold
pursuant to the Offering will be determined in the context of the
market prior to the filing of the final short form prospectus in
respect of the Offering. The Units will be offered in the provinces of
British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, Canada
by way of a short form prospectus.
In consideration for the services to be rendered by the Agents under
the Offering, the Agents will receive a cash commission of 7% of the
gross proceeds of the Offering (including any Units issued as a result
of the exercise of the Over-Allotment Option). The Agents will also
receive non transferable compensation warrants (the "Compensation
Warrants") entitling the Agents to purchase, in the aggregate,
that number of Common Shares that is equal to 7% of the aggregate
number of Units and Over-Allotment Units sold pursuant to the Offering.
The Company intends to use the net proceeds of the Offering to fund
ongoing exploration and mine development activities at the Whirlwind
and Energy Queen Mines, expansion of mineral resources at currently
controlled properties through additional drilling and technical report
preparation, continued Colorado Plateau property acquisition, detailed
final design engineering for the proposed Pinon
Ridge Mill, and for general working capital purposes.
Closing of the Offering is subject to certain conditions including, but
not limited to, the execution of a definitive agency agreement with the
Agents, receipt of all necessary regulatory and stock exchange
approvals including the receipt of listing approval by the Toronto
Stock Exchange ("TSX") for: (i) the
Common Shares included in the Units and the Over-Allotment Units, and
(ii) the Common Shares issuable pursuant to the exercise of the
Warrants included in the Units, the Warrants included in the
Over-Allotment Units and the Compensation Warrants. Successful listing
of such Common Shares will be subject to the Company fulfilling all of
the listing requirements of the TSX.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or under any U.S. state securities
laws and may not be offered or sold in the United States, absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This news release does not constitute an offer to sell
or the solicitation of an offer to buy nor will there be any sale of
the securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Energy Fuels: Energy Fuels Inc. is a uranium and vanadium mineral
development company actively rehabilitating and developing formerly
producing mines. With more than 38,000 acres of highly prospective
uranium and vanadium property located in the states of Colorado, Utah,
Arizona, Wyoming, and New Mexico, and exploration properties in
Saskatchewan's Athabasca Basin totaling approximately 32,000 additional
acres, the Company has a full pipeline of additional development
prospects. Energy Fuels, through its wholly-owned Colorado subsidiary,
Energy Fuels Resources Corporation and its British Columbia subsidiary,
Magnum Uranium Corp., has assembled this property portfolio along with
a first class management team, including highly skilled technical
mining and milling professionals based in Lakewood and Naturita, Colorado and Kanab, Utah.
This news release contains certain forward-looking statements and
forward-looking information . 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, Manitoba, Saskatchewan and Ontario provincial securities
regulatory authorities.
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