Energy Fuels buys uranium mining firm
Energy Fuels Inc., the company pursuing development of a uranium mill in Montrose County, has completed the acquisition of a company with a high-grade uranium mine, Strathmore Minerals Corp.
Energy Fuels acquired a 60-percent share of the Roca Honda project in New Mexico.
The acquisition is “an important step toward our goal of becoming the dominant uranium producer within the U.S., which is the world’s largest nuclear power market and heavily dependent on imported uranium for over 90 percent of its supply requirements,” Stephen Antony, Energy Fuels president and CEO, said.
Acquiring Strathmore will strengthen Energy Fuels’ position in the Four Corners region and in Wyoming, Antony said.
Energy Fuels owns the White Mesa mill in Blanding, Utah, and company officials have said they hope to use that mill and one near Naturita to handle ore from mines on the Colorado Plateau and elsewhere.
As part of the deal, Strathmore shareholders received 1.47 common shares of Energy Fuels for each common share of Strathmore held, and now own approximately 19.5 percent of the common shares of Energy Fuels currently outstanding.
With the closing, Energy Fuels increased the size of its board of directors to 11, including Steven Khan, the former president and a director of Strathmore; and Eun Ho Cheong, the vice president of overseas resources project development for Korea Electric Power Corp.
Roca Honda is expected to produce 2.6 million pounds of uranium oxide per year for nine years.