Energy Fuels Closes Sale of Non-Core Assets

Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) has closed the previously announced sale of some of its non-core uranium assets. The assets were sold to a private investor group, which was led by George Glasier and Baobab Asset Management LLC.

As quoted in the press release:

As previously reported, the transaction involved certain mining assets located along the Colorado-Utah border, including the Sunday Mine 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 a result of the closing of this transaction, the Company has received cash and other consideration totaling US$1,500,000, plus another US$151,000 of cash to reimburse the Company for certain pre-closing expenses. In addition, the Company retained a 1% production royalty on all of the properties and expects to receive an additional US$230,000 of cash from the return of collateral from the bonds on the sold properties. The Piñon Ridge Mill license and related property, included in the previously announced transaction, are expected to close within two months, subject to regulatory approval.

Energy Fuels president and CEO, Stephen P. Antony, said:

We are pleased to close this transaction as part of our continued asset rationalization and cost reduction efforts. By monetizing these non-core uranium mining assets, Energy Fuels is able to improve our balance sheet and realize reductions in holding, permitting and compliance costs. Even though Energy Fuels no longer owns these properties, they still have the potential to provide future benefits to our White Mesa Mill through toll milling and similar arrangements, along with the associated production royalties. The White Mesa Mill remains the only operational uranium production facility in the region.

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