LAKEWOOD, CO, March 14, 2016
/CNW/ - Energy Fuels Inc. (NYSE MKT:UUUU; TSX:EFR) ("Energy
Fuels" or the "Company") is pleased to announce that it has
closed the previously announced public offering (the
"Offering") of Units made pursuant to an underwriting
agreement dated March 9, 2016 between
the Company and a syndicate of underwriters led by Cantor
Fitzgerald Canada Corporation, as sole bookrunner, along with
Haywood Securities Inc., Roth Capital Partners, LLC, Dundee
Securities Ltd., Raymond James Ltd., and Rodman & Renshaw, a
unit of H.C. Wainwright & Co.,
LLC.
Pursuant to the Offering, the Company sold an aggregate of
5,031,250 Units (which includes 656,250 Units that were issued
upon the exercise, in full, of the over-allotment option that was
granted to the underwriters) at a price of US$2.40 per Unit for gross proceeds of
US$12.075 million. Each Unit
consists of one common share (each a "Share") and one half of one
common share purchase warrant (each whole warrant a "Warrant"), or
a total of 5,031,250 Shares and 2,515,625 Warrants. Each
Warrant will be exercisable until March 14,
2019 and will entitle the holder thereof to acquire one
Share upon exercise at an exercise price of US$3.20 per Share.
The current intention is to use the net proceeds of the Offering
to: (i) continue to fund wellfield construction at the
Company's Nichols Ranch Project in Wyoming; (ii) continue to finance the
previously announced shaft sinking and evaluation at the Company's
high-grade Canyon mine project in Arizona; (iii) fund costs associated with the
proposed acquisition of Mesteña Uranium, LLC announced earlier this
week; (iv) fund the cash portion of the proposed acquisition of the
remaining 40% of the Roca Honda Project announced last week; and
(v) use any remaining funds for general corporate needs and working
capital requirements.
Stephen P. Antony, President and
CEO of Energy Fuels commented: "Following today's financing,
Energy Fuels has the liquidity to execute our business plan in a
variety of uranium price environments. We recently announced
two strategic acquisitions. We are currently under contract
to acquire Mesteña Uranium LLC, which is expected to provide the
Company with a permitted source of near-term ISR uranium production
that is on the lower end of our cost curve. We have also
entered into a letter of intent to boost our interest in the Roca
Honda Project to 100%, which is expected to increase Energy Fuels'
large-scale conventional production capabilities, at improved
uranium prices. In addition, Energy Fuels is currently
pursuing two major capital initiatives, including continued shaft
sinking and resource evaluation at the high-grade Canyon mine in
Arizona and expanding the
wellfields at the Nichols Ranch Project in Wyoming. In
today's weak price environment, our ongoing investments and recent
corporate initiatives demonstrate Energy Fuels' focus on our lowest
cost sources of uranium production, while at the same time
increasing our scalability to improved uranium prices."
About Energy Fuels: Energy Fuels
is a leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels operates two of America's key uranium production centers, the
White Mesa Mill in Utah and the
Nichols Ranch Processing Facility in Wyoming. The White Mesa
Mill is the only conventional uranium mill operating in the U.S.
today and has a licensed capacity of over 8 million pounds of
U3O8 per year. The Nichols Ranch
Processing Facility, acquired in the Company's acquisition of
Uranerz Energy Corporation, is an in situ recovery ("ISR")
production center with a licensed capacity of 2 million pounds of
U3O8 per year. Energy Fuels also has
the largest NI 43-101 compliant uranium resource portfolio in the
U.S. among producers, and uranium mining projects located in a
number of Western U.S. states, including one producing ISR project,
mines on standby, and mineral properties in various stages of
permitting and development. The Company's common shares are
listed on the NYSE MKT under the trading symbol "UUUU", and on the
Toronto Stock Exchange under the trading symbol "EFR".
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains certain "Forward-Looking
Information" and "Forward Looking Statements" within the meaning of
applicable Canadian and United
States securities legislation, which may include, but is not
limited to, statements with respect to the expected use of proceeds
from the Offering and expected benefits of the acquisitions
(together, the "Acquisitions") of Mesteña and the
portion of the Roca Honda Project not previously owned by the
Company. These forward-looking statements can be
identified by the use of forward-looking terminology such as
"intends", "may," "will," "plans," "believes," "anticipates,"
"expects," "estimates," "predicts," "potential," "continue,"
"opportunity," "goals," or "should". All statements, other
than statements of historical fact, herein are considered to be
forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the use of proceeds from the Offering and the
benefits of the Acquisitions to be different from those expressed
by the forward-looking statements. Factors that could cause
such events to differ from those anticipated in these
forward-looking statements include risks associated with: the
Company's ability to use the proceeds from the Offering as expected
and to realize the expected benefits of the Acquisitions, which
could be affected by many of the risks described under the caption
"Risk Factors" in the Company's Annual Information Form dated
March 18, 2015, which is available
for review on SEDAR at www.sedar.com, in its Form 40-F, which is
available for review on EDGAR at www.sec.gov/edgar.shtmland
in the Prospectus Supplement dated March 9,
2016 that was filed in connection with the Offering, and
which is available for review on SEDAR and EDGAR.
Forward-looking statements contained herein are made as of the date
of this news release, and the Company disclaims, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
The Company assumes no obligation to update the information
in this communication, except as otherwise required by
law.
SOURCE Energy Fuels Inc.