Anfield Resources and Uranium One Sign Definitive Agreement For Shootaring Canyon Mill

Anfield Resources (TSXV:ARY,OTCQB:ANLDF,FWB:0AD) has amended and signed definitive agreements with Uranium One (TSX:UUU) for the acquisition of the Shootaring Canyon Mill and substantially all of Uranium One’s conventional North American assets. Anfield will work with the TSX Venture Exchange to receive approval for the transaction, and the deal is expected to close by August 15 2015.
Assets included in the transaction are:

• The Shootaring Canyon Mill and license, located in Garfield County, Utah;
• The Velvet-Wood uranium project, located in San Juan County Utah;
• Surface stockpiles containing uranium mineralized material;
• A 50% interest in a joint venture on the Wate Breccia Pipe in northern Arizona, the joint venture partner being Energy Fuels Inc.;
• The Frank M uranium project, located in Garfield County, Utah, approximately 12 km from the Shootaring Canyon Mill;
• Additional uranium exploration targets located in southeastern Utah, northern Arizona, and South Dakota;
• Royalty interests in four uranium development projects.

Anfield’s release also outlined terms of the amended agreement:

Under the terms of the Amendment, Uranium One has agreed to initially provide approximately $7.1 million in cash collateral required for the issuance of the replacement surety bond for both the Shootaring Canyon Mill and other smaller bonds currently in place, which allows the parties to proceed to closing the transaction.  The surety bond will be provided with a collateral reduction of 25%; thus the $9.4 million required bond amount will be backed by approximately $7.1 million in cash.  Anfield will be responsible for paying the 3% annual bond premium and, within twenty four months following closing, the Company will deposit funds with the provider of the replacement surety bond to cover the surety bond cash collateral and cause the full release of Uranium One’s cash collateral.

With the replacement surety bond issue now being resolved, Anfield now only needs to receive final approval for the transaction from the TSX Venture Exchange and it will have satisfied all of its closing conditions, including the following:

• Obtained conditional approval from the Utah Division of Radiation Control for transfer of the Shootaring Mill radioactive materials license and accompanying groundwater discharge permit;
• Obtained conditional approval from the TSX Venture Exchange for the transaction to proceed;
• Obtained approval from the Committee on Foreign Investment in the United States for the transaction to proceed;
• Obtained approval from the Federal Communications Commission for transfer of the radio communications license; and
• Completed a National Instrument 43-101 resource report for the Velvet-Wood project in anticipation of the transfer.

In addition to the above conditions being met, Anfield has taken steps to facilitate the advancement of the assets to be acquired, as it has:

• Commenced a Preliminary Economic Assessment report for the Velvet-Wood project in anticipation of the transfer; and
• Received commitment to replace long-term government reclamation bonds at a collateral reduction of 25%.

Anfield CEO, Corey Dias, said:

We are very pleased to have advanced the transaction toward the closing by amending the definitive agreements to provide for the issuance of the replacement surety bonds. . It is a significant achievement for Anfield as we now move toward the closing of the acquisition of one of only three licensed and permitted conventional uranium mills in existence in the United States as well as a project with a current uranium resource. We will now seek TSX Venture Exchange approval in order to satisfy all of Anfield’s closing conditions regarding the transaction, and we expect the closing to open up additional avenues for potential future acquisitions, strategic partnerships and obtaining financing. This will be crucial to moving forward with developing our significant portfolio of uranium assets, as well as mill restart.

Click here to read the Anfield Resources (TSXV:ARY,OTCQB:ANLDF,FWB:0AD) press release
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