Firm to develop mines across West; sites in Colorado ‘on standby’
Energy Fuels Inc. has raised $5 million for development of existing mines in Arizona, New Mexico and Wyoming.
The company, in the meantime, will keep two Colorado mines on standby, officials said.
The Whirlwind Mine in Mesa County and Sunday Mine in San Miguel County will remain in “a relative state of readiness and upkeep,” Energy Fuels spokesman Curtis Moore said. “Once uranium prices recover to a sufficient level, we could restart these two particular Colorado projects within a relatively short period of time.”
Energy Fuels will use the offering of 31,250,000 common shares to finance the continued exploration and development of its Roca Honda, Sheep Mountain, Gas Hills, Juniper Ridge and Canyon Mine mineral properties.
It also will devote some of the revenue to the identification and evaluation of future potential mineral property acquisitions and for working capital and general corporate purposes.
Energy Fuels is planning to construct a $150 million uranium and vanadium mill in Montrose County when uranium prices rebound to a point that officials say they can justify the development.
The mill has obtained a radioactive-materials handling permit from the state of Colorado and is working on other permits in the meantime.
Uranium has dipped to a spot price of $35.15 a pound, about half its recent high in 2011.
One development that could boost uranium prices would be Japan restarting its nuclear reactors, as well as bringing online some 70 reactors under construction around the world, said Moore, director of investor and public relations for Denver-based Energy Fuels.
“In addition, uranium mining projects around the world are being deferred or canceled altogether. At some point, those supply dynamics will assert themselves,” Moore said.
The offering was purchased by a consortium of underwriters led by Dundee Securities Ltd., Cantor Fitzgerald Canada Corp., and Haywood Securities Inc.
Energy Fuels’ common shares are listed on the Toronto Stock Exchange under the trading symbol EFR.