Energy Fuels, Uranerz Receive Shareholder Approval for Acquisition

Energy Fuels (NYSEMKT:UUUU, TSX:EFR) and Uranerz Energy (NYSE MKT:URZ,TSX:URZ) announced that shareholders of both companies approved the acquition of Uranerz by Energy Fuels. The merger was originally announced on January 5.

As quoted in the press release:

Both Energy Fuels and Uranerz held their respective meetings of shareholders, at which time both sets of shareholders approved the Transaction. At this time, all conditions to closing have been satisfied, subject to final U.S. Nuclear Regulatory Commission consent, which is in the final stages of the agency’s concurrence process.

Pursuant to the Transaction, each Uranerz shareholder will receive 0.255 Energy Fuels common shares for each share of Uranerz common stock held. In addition, all outstanding options and warrants to acquire Uranerz shares of common stock will entitle the holder thereof to acquire 0.255 common shares of Energy Fuels on exercise thereof at an exercise price equal to the exercise price of such option or warrant divided by 0.255.

Energy Fuels released its Q1 results last month. Highlights included:

• $7.60 million of total revenue was realized by the Company.
• Gross Profit of $3.65 million from mining and milling operations was realized by the Company, representing a gross profit margin of approximately 48%.
• A net loss of $2.36 million was realized by the Company.
• 116,667 pounds of U3O8 sales were completed by the Company at an average realized price of $59.95 per pound, pursuant to an existing term contract.
• 197,116 pounds of U3O8 were produced from the Company’s White Mesa Mill of which 113,881 pounds were from alternate feed materials and other processing, and 25,162 pounds were from the Company’s Arizona mines. 58,073 pounds were produced under a processing arrangement for the account of a 3rd party.
• At March 31, 2015, the Company had $35.20 million of working capital, including cash and cash equivalents of $6.54 million and 816,408 pounds of uranium concentrate inventory. The Company’s contractual deliveries and related sales are based on delivery schedules which can vary from quarter to quarter. As discussed below, the Company expects to sell an additional 683,333 pounds of U3O8 during the remainder of the year under existing contracts which will generate significant cash for the Company’s operational needs. The Company believes it has sufficient cash and resources to carry out its business plan beyond calendar year 2015.
• On January 5, 2015, Energy Fuels announced the execution of a definitive agreement (“DA”) pursuant to which, upon receipt of shareholder and regulatory approvals, the Company would acquire all of the issued and outstanding shares of common stock of Uranerz Energy Corporation. Under the terms of the DA, shareholders of Uranerz would receive 0.255 common shares of Energy Fuels for each share of Uranerz common stock held
• On February 6, 2015, the Company announced that it is preparing to resume development at its high-grade Canyon mine in Arizona. The Company expects to transition mining personnel from the currently-producing Pinenut mine to the Canyon mine during Q2-2015, at which point the Company expects the economic resources at the Pinenut mine to be depleted.
• On February 17, 2015, the Company announced that it had acquired a 50% interest in the high-grade Wate uranium deposit (the “Wate Project”) from VANE Minerals (US) LLC (“VANE”). The Wate Project is held in the Wate Mining Company, LLC joint venture (“LLC”). The other 50% of the LLC is held by Uranium One Americas, Inc. The Wate Project is a high-grade uranium deposit located in Arizona that is estimated to host approximately 1.12 million pounds of uranium contained in approximately 0.07 million tons of Inferred Mineral Resources with an average grade of 0.79% eU3O8.

Click here to read the Energy Fuels (NYSEMKT:UUUU,TSX:EFR) press release

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