Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced that it has completed the previously announced acquisition of Sumitomo Corporation’s 40% interest in the Roca Honda Project.
Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced that it has completed the previously announced acquisition of Sumitomo Corporation’s 40% interest in the Roca Honda Project. The Company now owns and controls 100% of the Roca Honda Project, which is one of the largest and highest-grade uranium projects in the United States.
As a result of the acquisition, Energy Fuels has significantly increased the size of its industry-leading U.S.-based uranium resource portfolio by 6.8% (Measured & Indicated) and 12.4% (Inferred). Energy Fuels now owns 100% of the uranium resources at the Roca Honda Project, which, according to a February 27, 2015 Technical Report and Preliminary Economic Analysis (the “PEA”), prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”) (see disclosure below relating to reliance on a PEA), holds a total of 1.5 million tons of Measured and Indicated Mineral Resources with an average grade of 0.48% U3O8 containing 14.6 million pounds of uranium, together with 1.2 million tons of Inferred Mineral Resources with an average grade of 0.47% U3O8, containing 11.2 million pounds of uranium. The project is currently at an advanced stage of permitting and boasts attractive operating costs, total expected production of approximately 25 million pounds of uranium, and a nine year mine life.
The PEA assumes that Roca Honda mined material will be processed at the Company’s 100%-owned White Mesa Mill, which is within economic trucking distance. Furthermore, the cash costs described in the PEA for the Roca Honda Project cover 100% of the costs of the White Mesa Mill, even though the Roca Honda Project will only utilize a portion of the mill’s capacity.
As previously announced, the Company also holds properties adjacent to the Roca Honda Project that contain significant additional historical resources. According to a 2007 report, these adjacent properties contain an additional 0.7 million tons at a grade of 0.34% eU3O8, containing 4.8 million pounds of uranium. These properties also contain existing mine infrastructure and excellent exploration prospects, which have the potential to enlarge the scope of the project and further improve upon the economics currently described in the PEA (see disclosure below relating to reliance on historical resource estimates).
Energy Fuels President and CEO, Stephen P. Antony, stated:
Energy Fuels is pleased to complete this important acquisition at what we believe is a reasonable price, as it provides the Company with a number of benefits, including complete control over the timing, budget, and scope of the project and complete internalization of the benefits of the project when it goes into production by processing Roca Honda material at our White Mesa Mill, which is the only licensed conventional uranium mill currently operating in the U.S. The Roca Honda Project is an important component in our strategy of combining large-scale optionality and leverage to improving uranium markets, with lower cost production from our Nichols Ranch Project, alternate feed materials, certain of our Arizona Strip conventional properties, and our pending acquisition of Mesteña Uranium, LLC. We thank Sumitomo for being a valued joint venture partner over the past several years and wish them the best of luck in their new focus on producing mine assets.