Southern Utah News Articles
Energy Fuels and Denison Mines announce transaction
Two large uranium heavyweights that have done business in the northern Arizona area have announced a transaction that will result in creating a leading U.S. uranium company.
Energy Fuels, Inc. and Denison Mines announced on April 16 that they have entered into a letter agreement to complete a transaction where EFR will acquire all of Denison’s mining assets and operations located in the United States. After closing the transaction, Denison will complete a plan of arrangement, whereby Denison will complete a reorganization of its capital and will distribute Energy Fuel share consideration to Denison Mine shareholders on a pro rata basis as a return of capital.
The two companies believe the Energy Fuels and Denison transaction will provide a number of benefits to shareholders of both companies. Those include the creation of the largest 100% U.S. uranium producer.
U.S. focus is the plumb of the transaction, according to the two entities. Domestic consumption of 55 million pounds of U308 per year, versus domestic production of only four million pounds of U308 per year currently. Operational and capital efficiencies to increase production were also cited.
“This transaction is transformational for Energy Fuels and reshapes the landscape of the uranium sector within the U. S.,” said Steve Anthony, President and CEO of Energy Fuels. “The result is an unmatched production growth profile and the opportunity for both Energy Fuels and Denison shareholders to benefit from the clear operational synergies that result from this transaction.”
“This transaction is an important step forward for Denison,” said Ron Hochstein, President and CEO of Denison. “The company has evolved on two parallel but different tracks, being both an exploration and development entity with a global footprint and an established producer in the United States. We are pleased to have the opportunity to combine our U.S. operations with such a complimentary set of assets and people. I’m excited about the opportunities that lie ahead for both Denison and Energy Fuels shareholders, and believe that this transaction only serves to strengthen the operations of both companies.”