Combination expected to close on October 2, 2024
DENVER, Sept. 12,
2024 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy
Fuels" or the "Company"), an industry leader in uranium and
rare earth elements ("REE") production for the energy
transition, is pleased to announce that the Federal Court of
Australia (the "Court") has
today made orders approving the proposed acquisition of Base
Resources Limited ("Base") by Energy Fuels by way of a
scheme of arrangement under Australia's Corporations Act (the
"Scheme").
As previously announced on April 21,
2024, under the Scheme, Energy Fuels will acquire 100% of
the issued shares of Base in consideration of the issuance by the
Company of 0.026 Energy Fuels Common Shares for every Base share
held and the payment by Base of a special dividend of AUD
$0.065 per Base share.
Mark S. Chalmers, President
and CEO of Energy Fuels stated: "I am very pleased that the
Court has approved Energy Fuels' combination with Base Resources.
This approval is the final approval required before closing, which
is expected to occur on October 2,
2024. We look forward to developing the world-class Toliara
Project with Base's experienced team as a major step in our
development of a world-class critical minerals company at a time
when geopolitics is making domestic supply chains more important
than ever. I am also very pleased to see that the recent
improvements in REE prices are continuing, with the price of NdPr
now at approximately $59.60 per
kilogram."
As a next step, a copy of the Court order will be lodged with
the Australian Securities and Investments Commission
("ASIC") and the Scheme will become effective,
which is expected to occur on September 13, 2024. As a
result, September 13, 2024, is expected to be Base's last
day of trading on the Australian Stock Exchange ("ASX"). The
Special Dividend (AUD$0.065 per share) is expected to be paid to
Base shareholders on October 1, 2024, and implementation of
the Scheme is expected to occur on October 2, 2024.
The Toliara Project is subject to negotiation of fiscal terms
with the Madagascar government and the receipt of
certain Madagascar government approvals and actions before a
current suspension on activities at the Toliara Project will be
lifted and development may occur.
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company.
The Company, as a leading producer of uranium in the
United States, mines uranium and
produces natural uranium concentrates that are sold to major
nuclear utilities for the production of carbon-free nuclear energy.
Energy Fuels recently began production of advanced rare earth
element ("REE") materials, including mixed REE carbonate in
2021, and commenced production of commercial quantities of
separated REEs in 2024. Energy Fuels also produces vanadium from
certain of its projects, as market conditions warrant, and is
evaluating the recovery of radionuclides needed for emerging cancer
treatments. Its corporate offices are in Lakewood,
Colorado, near Denver, and
substantially all its assets and employees are in the
United States. Energy Fuels holds
two of America's key uranium production centers: the White Mesa
Mill in Utah and the Nichols Ranch in-situ recovery
("ISR") Project in Wyoming. The White Mesa Mill is the
only conventional uranium mill operating in the US today, has a
licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to
produce vanadium when market conditions warrant, as well as REE
products, from various uranium-bearing ores. The Nichols Ranch ISR
Project is on standby and has a licensed capacity of 2 million
pounds of U3O8 per year. The Company
recently acquired the Bahia Project in Brazil and entered
into a joint venture agreement to develop the Donald Project
in Australia, each of which is believed to have significant
quantities of titanium (ilmenite and rutile), zirconium (zircon)
and REE (monazite) minerals. In addition to the above production
facilities, Energy Fuels also has one of the largest NI 43-101
compliant uranium resource portfolios in the US and several uranium
and uranium/vanadium mining projects on standby and in various
stages of permitting and development. The primary trading market
for Energy Fuels' common shares is the NYSE American under the
trading symbol "UUUU," and the Company's common shares are also
listed on the Toronto Stock Exchange under the trading symbol
"EFR." Energy Fuels' website is www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: This news release contains certain
"Forward Looking Information" and "Forward Looking Statements"
within the meaning of applicable United States and
Canadian securities legislation, which may include, but are not
limited to, statements with respect to: any expectation that the
Company will maintain its position as a leading U.S.-based critical
minerals company or as a leading producer of uranium in the U.S.;
any expectation that the acquisition of Base Resources will be
completed or if completed, completed on the terms and time
proposed; any expectation that Energy Fuels will be successful in
agreeing on fiscal terms with the Government of Madagascar or in achieving sufficient fiscal
and legal stability for the Toliara Project, if acquired; any
expectation that the current suspension relating to the Toliara
Project will be lifted in the near future or at all; any
expectation that the Toliara Project will be developed; any
expectation that the Company will become a world-class critical
minerals hub; and any expectation that the Company's evaluation of
radioisotope recovery at the Mill will be successful. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans," "expects," "does not
expect," "is expected," "is likely," "budgets," "scheduled,"
"estimates," "forecasts," "intends," "anticipates," "does not
anticipate," or "believes," or variations of such words and
phrases, or state that certain actions, events or results "may,"
"could," "would," "might" or "will be taken," "occur," "be
achieved" or "have the potential to." 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 actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements include risks associated with: commodity
prices and price fluctuations; engineering, construction,
processing and mining difficulties, upsets and delays; permitting
and licensing requirements and delays; changes to regulatory
requirements; legal challenges; the availability of feed sources
for the Mill; competition from other producers; public opinion;
government and political actions; the failure of the Company to
complete the acquisition of Base Resources; the failure of the
Government of Madagascar to agree on fiscal terms for the
Toliara Project or provide the approvals necessary to achieve
sufficient fiscal and legal stability on acceptable terms and
conditions or at all; the failure of the current suspension
affecting the Toliara Project to be lifted on a timely basis or at
all; the failure of the Company to provide or obtain the necessary
financing required to develop Toliara Project and the Company's
other projects; available supplies of monazite; the ability of the
Mill to produce REE carbonate, REE oxides or other REE products to
meet commercial specifications on a commercial scale at acceptable
costs or at all; market factors, including future demand for heavy
mineral sands and/or REEs; actual results may differ from all such
estimates and projections; the ability of the Mill to recover
radium or other radioisotopes at reasonable costs or at all; market
prices and demand for medical isotopes; and the other factors
described under the caption "Risk Factors" in the Company's most
recently filed Annual Report on Form 10-K, which is available for
review on EDGAR at www.sec.gov/edgar, on SEDAR+
at www.sedarplus.ca, and on the Company's website
at www.energyfuels.com. 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.
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SOURCE Energy Fuels Inc.