![]() ![]() In combination with future uranium production, the Company expects to utilize this inventory to fulfill its delivery obligations under its supply contracts with US nuclear utilities. In addition, in January 2023, the Company sold 300,000 pounds of U 3O 8 to the US government for the establishment of the strategic Uranium Reserve, earning total gross proceeds of $18.5 million, or $61.57 per pound.Īs a result of 2022 production, recent purchases, and the sale to the US government, Energy Fuels currently holds approximately 847,000 pounds of U 3O 8 in inventory at a book value of $29.19 per pound (worth about $42.5 million at the current weekly uranium spot price as reported by TradeTech). In addition, over the past several months, the Company has invested in additional uranium inventories, having purchased approximately 301,000 pounds of US-origin U 3O 8 at a weighted average price of $50.08 per pound. The exact timing for resumption of ore production from each of these projects will be subject to current and future uranium sales and inventory requirements.Įnergy Fuels’ 2022 uranium production of 162,000 pounds exceeded its previously announced guidance of 130,000 to 140,000 pounds of U 3O 8. The Company is also preparing four (4) of its conventional uranium and uranium/vanadium mines to be ready to resume uranium ore production, including significant workforce expansion and performing needed rehabilitation of surface and underground infrastructure. At the current time, the Company’s White Mesa Mill (the “ Mill“) is the only US uranium facility producing material quantities of uranium, having produced 162,000 pounds of U 3O 8 in Q4-2022. In addition, the Note provides Energy Fuels with significant exposure to uranium market upside through potential conversion into enCore common shares.īoosting Industry-Leading US Uranium Production:Įnergy Fuels plans to invest a portion of the proceeds from the Transaction into increasing its US industry-leading uranium production. ![]() The Transaction provides Energy Fuels with significant additional cash and working capital, enabling the Company to ramp-up its US industry-leading uranium and rare earth element (“ REE“) production, while avoiding dilution to shareholders. The Transaction also reduces the Company’s holding costs related to Alta Mesa by approximately $2 million per year. In addition, enCore is required to replace the existing reclamation bonds for the Alta Mesa project shortly after the Closing, which will result in Energy Fuels receiving an additional $3.6 million cash as a return of collateral from those bonds. Unless a block trade or similar distribution is executed by Energy Fuels to sell enCore shares received upon conversion of the Note, Energy Fuels will be limited to converting the Note into a maximum of $10 million principal amount per thirty (30) day period. The Note is guaranteed by enCore and is fully secured by Alta Mesa. ![]() enCore was recently listed on the NYSE American and also trades on the TSX Venture Exchange. The Note will be convertible at Energy Fuels’ election into enCore common shares at a conversion price of $2.9103 per share, being a 20% premium to the 10-day volume-weighted average price of enCore shares ending the day before the Closing. $60 million in a secured convertible note (the “ Note“), payable in two (2) years from the Closing, bearing annual interest of eight percent (8%).$60 million cash at or prior to Closing and.Unless otherwise indicated, all references to dollar amounts in this press release are references to US$. (“ enCore“) for total consideration of $120 million (the “ Transaction“). ( NYSE American: UUUU) ( TSX: EFR) ( “Energy Fuels” or the “Company”) is pleased to announce that it has completed the sale (the “ Closing“) of three (3) wholly-owned subsidiaries that together hold Energy Fuels’ Alta Mesa ISR Project (“ Alta Mesa“) to enCore Energy Corp. 15, 2023 /PRNewswire/ – Energy Fuels Inc. Sale provides Energy Fuels with significant non-dilutive funding for expansion of industry-leading US uranium production and completion of ‘Phase 1’ rare earth separation circuit.
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