Energy Fuels Inc. (NYSE MKT:UUUU,TSX:EFR) reported that as part of its continuing cost reduction and asset rationalization strategy, it has entered into definitive agreements to sell certain non-core uranium assets to a private investor group led by Baobab Asset Management LLC. The assets in the transaction will include the Piñon Ridge mill license and related assets, as well as certain other mining assets located along the Colorado-Utah border, including the Sunday Complex, the Willhunt project, the San Rafael project, the Sage mine, the Van 4 mine, the Farmer Girl project, the Dunn project and the Yellow Cat project.
As quoted in the press release:
Through these transactions, the Company expects to realize reductions in holding, permitting, litigation and compliance costs over the next several years related to these assets. The Piñon Ridge Mill is the first new uranium mill to be licensed in the U.S. in over 30 years. However, with the acquisition of the White Mesa Mill in 2012, the Company no longer needs to construct the Piñon Ridge Project in order to meet its planned production.
Energy Fuels CEO, Stephen P. Antony, said:
Energy Fuels is continuing to focus its business strategy on projects that contribute to our ability to significantly increase uranium production as uranium prices recover. As a result, we are disposing of certain non-core assets, like those included in this transaction. We continue to believe in the long-term fundamentals of uranium markets, which will allow us the opportunity to significantly increase production as market conditions warrant. We do not expect the sale of these assets to materially impact the Company’s future production potential or scalability. In addition, we expect to continue our asset rationalization efforts, which may include the sale of additional properties in the future.