Energy Fuels sells non-core uranium assets

As part of its ongoing asset rationalization strategy, Energy Fuels has sold several non-core uranium projects in the USA to Encore Energy Corporation. Energy Fuels plans to concentrate on its higher-grade, lower-cost projects.

Energy Fuels announced today that it has entered into a definitive agreement to sell the non-core assets to Vancouver, Canada-based Encore - not to be confused with the US oil and gas company of the same name - for $329,960 in cash and 14.25 million common shares of enCore. At the closing of the deal, Energy Fuels will own 19.9% of the issued and outstanding shares of Encore. As part of the transaction, Encore will assume all liabilities on the properties, including all debts, obligations and environmental claims.

The assets to be sold to Encore include unpatented mining claims and leases known as the Marquez and Nose Rock projects in New Mexico, the Moonshine project in Arizona, and the Cedar Mountain, Geitus, Blue Jay, and Marcy Look projects in Utah.

Energy Fuels said these projects "do not fit into the company's long-term production plans, due to their lower relative grades and various other technical and economic considerations". It said the projects were being divested under its asset rationalization strategy that "cuts holding, permitting and corporate costs and allows the company to focus on its higher quality uranium assets."

Encore already has a 100% interest on over 46,400 ha of private mineral rights in New Mexico, including the Crownpoint and Hosta Butte uranium deposits.

Energy Fuels said it will focus on its higher quality uranium projects, including the Nichols Ranch in-situ leach (ISL) project, the permitted Hank ISL project, the near-permitted Jane Dough ISL project, the high-grade Canyon mine, the alternate feed material business at the White Mesa Mill, and the larger-scale Roca Honda, Sheep Mountain and Henry Mountains conventional projects.

Earlier this month, Energy Fuels took full ownership of the Wate high-grade uranium project in northern Arizona through the acquisition of a 50% interest in the project from Anfield Resources for cash and shares.

Researched and written
by World Nuclear News