Uranium Energy Corp. is pleased to announce the Company has completed the transactions contemplated in the definitive share purchase agreement with Uranium One Investments Inc., a subsidiary of Uranium One Inc., and has acquired all of the issued and outstanding shares of Uranium One Americas, Inc. ("U1A") for a total purchase price of $112 million in cash together with an additional $2.9 million in estimated working capital (primarily pre-paid insurance and land payments) and the assumption of $19 million in reclamation bonding. Uranium One is the world's fourth largest uranium producer and part of Russia's State Atomic Energy Corporation, Rosatom.
Uranium Energy Corp Creates America’s Largest Uranium Mining Company with the Acquisition of Uranium One Americas. The U1A portfolio of projects being acquired by Uranium Energy Corp (UEC: NYSE American) pursuant to the Acquisition includes, among other assets, seven projects in the Powder River Basin, three of which are fully permitted, and five in the Great Divide Basin. (CNW Group/Uranium Energy Corp)
The Acquisition was fully funded with UEC's existing cash on hand. Subsequent to closing, UEC holds approximately $120 million of cash and liquid assets.
Amir Adnani, President and CEO, stated: "We are very pleased to have closed this highly accretive transaction for UEC. The Acquisition doubles our production capacity in three key categories: total number of permitted U.S. ISR projects, resources, and processing infrastructure. Also, the opportunity to have acquired an advanced asset base of this quality from one of the global leaders in the nuclear energy industry is highly unique."
Mr. Adnani concluded: "With this Acquisition, UEC's sector leading U.S. ISR production profile increases to 6.5 million pounds U3O8 per year based on permitted and installed capacity of our Wyoming and South Texas hub-and-spoke operations. Combined with our physical uranium holdings of 4.1 million pounds of U.S. warehoused uranium, we now have the unparalleled ability to provide reliable domestic supply to the U.S. Government as well as nuclear utilities while providing our shareholders exposure to the fastest growing, 100% unhedged and pure play uranium business listed on the NYSE American."
UEC Chairman and former U.S. Energy Secretary, Spencer Abraham, commented: "We believe this Acquisition will accelerate the development of domestic uranium production that can supply U.S. origin uranium for a full range of America's uranium requirements. We are proud to be the Company to acquire these significant U1A uranium assets that increase U.S. uranium production capabilities and, by returning them to US ownership, strengthen America's energy and national security."
Acquisition Highlights
The U1A assets are primarily situated in the Powder River Basin of Wyoming; the most productive in-situ recovery ("ISR") uranium mining district in the western hemisphere. Highlights of the Acquisition include the following:
1. Largest U.S. Uranium Mining Company: Positions UEC, a U.S. corporation headquartered in Texas, as the largest American uranium mining company.
2. Highly Accretive Transaction: The Acquisition doubles production capacity in three key categories: total number of permitted U.S. ISR projects, resources, and processing infrastructure.
3. Wyoming Hub and Spoke: Creates Wyoming hub-and-spoke operations for UEC, anchored by U1A's Irigaray plant which is one of the largest central processing facilities in the United States with a licensed capacity of 2.5 million pounds U3O8 per year.
4. Production Ready: Incorporates U1A's production-ready assets including Christensen Ranch ISR Project with four fully installed wellfields, and six additional permitted or development-stage satellite ISR projects, combining with UEC's Reno Creek Project.
5. Reno Creek Synergies:
Anticipates significant capital expenditure savings and deep operating synergies with UEC's permitted and nearby Reno Creek ISR Project which is 45 miles away from the Irigaray plant.
6. Resource Expansion:
Secured approximately 37.6 million pounds U3O8 in historically estimated Measured and Indicated Resources and 4.3 million pounds U3O8 in historically estimated Inferred resources with considerable growth potential based on independent technical reports prepared for U1A.(*)(1)
7. Dominant Land Package:
The Acquisition added approximately 100,000 acres to UEC current land package in Wyoming, resulting in the Company holding about 118,000 acres in Wyoming's prolific uranium producing Power River and Great Divide Basins
(*) The U1A historical resources are not treated by UEC as current, but the Company plans to complete and submit technical reports as soon as possible for the purposes of establishing current resource s(1)
Next Steps
UEC has outlined several initiatives to integrate the U1A assets into the UEC portfolio. They include:
- The Company plans to complete and submit new technical reports on the advanced stage Projects in the U1A portfolio as soon as possible for the purposes of establishing current resources as the U1A historical resources are not treated as current by UEC.(1)
- Advance technical studies to further develop the Company's Wyoming hub and spoke strategy to capture the significant capital expenditure savings and operating synergies anticipated with its Reno Creek project.
- The U1A portfolio consists of additional mineralized brownfield projects that UEC intends to develop to generate technical resource reports.
- Perform an operational review on potential expansion of the Irigaray Central Processing Plant.
- In addition to Reno Creek, advance the Moore Ranch and Ludeman ISR projects in Wyoming as production satellite facilities along with the Company's development plans at Burke Hollow in South Texas.
- Review and integrate U1's significant tax loss carryforwards to be applied to offset future income.(2)
The Purchased Portfolio
The U1A portfolio of projects (the "Portfolio") being acquired pursuant to the Acquisition includes, among other assets, seven projects in the Powder River Basin, three of which are fully permitted, and five in the Great Divide Basin. The portfolio consists of dozens of under-explored, mineralized brownfield projects, backed by detailed databases of historic uranium exploration and development programs, thus greatly enhancing the potential for resource expansion.
(a) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 over a minimum thickness of 2 ft. Mineral Resources have not been demonstrated to be economically viable. Production by U1A has been deducted. – "Uranium One Q1 2019 Quarterly Report "Mineral Resource and Mineral Reserve Estimates".
(b) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 over a minimum thickness of 2 ft. and a GT cut-off of 0.30 ft-%. Mineral Resources have not been demonstrated to be economically viable. Independent Technical Report – "Technical Report on Resources, Moore Ranch Uranium Project, Campbell County, Wyoming USA", WWC Engineering, April 30, 2019.
(c) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 over a minimum thickness of 2 ft. and a GT cut-off of 0.25 ft-%. Mineral Resources have not been demonstrated to be economically viable. Independent Technical Report – "Technical Report on Resources Ludeman Uranium Project, Converse County, Wyoming, USA", WWC Engineering, January 25, 2019.
(d) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 over a minimum thickness of 2 ft. and a GT cut-off of 0.25 ft-%. Mineral Resources have not been demonstrated to be economically viable. Independent Technical Report – "Technical Report on Resources, Allemand-Ross Uranium Project, Converse County, Wyoming, USA", WWC Engineering, April 30, 2019.
(e) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 and a GT cut-off of 0.25 ft-%. Mineral Resources have not been demonstrated to be economically viable. Independent Technical Report – "Barge Uranium Project Mineral Resource NI 43-101 Technical Report, Amended and Restated, Converse County Wyoming, USA", BRS Inc., April 16, 2019.
(f) Mineral Resources were classified in accordance with CIM Definition Standards. Cut-off grade is 0.02% eU3O8 over a minimum thickness of 2 ft and a GT cut-off of 0.25 ft-%. Mineral Resources have not been demonstrated to be economically viable. Independent Technical Report – "JAB Uranium Project Mineral Resource NI 43-101 Report, Amended and Restated, Sweetwater County, Wyoming, USA", BRS Inc., April 16, 2019.
Managed & Built by I2M Consulting, LLC | © 2010-
