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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