Energy Fuels Acquires 50% Interest in Wate Deposit in Arizona

Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) announced the acquisition of a 50% interest in the high-grade Wate uranium deposit in Northern Arizona from VANE Minerals (US) LLC through Energy Fuels’ wholly-owned subsidiary EFR Arizona Strip LLC.

As quoted in the press release:

As consideration for the 50% interest in the LLC, Energy Fuels paid US$250,000 cash to VANE at closing, along with a US$500,000 non-interest-bearing promissory note, payable in two equal installments of US$250,000 on each of the first and second anniversaries of the note, and a 2% production royalty on the 50% LLC interest being acquired. The royalty can be purchased by Energy Fuels upon payment to VANE of an additional US$750,000, less any royalties previously paid. In addition, upon the LLC meeting certain permitting milestones and other conditions, the amounts due under the note will be accelerated, and the Company will pay an additional $250,000 cash to VANE. If Energy Fuels elects not to make the payments under the note, it will be required to transfer its interest in the LLC back to VANE.

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