TSX-V-listed International Consolidated Uranium (CUR) is entering the US uranium sector with the acquisition of a portfolio of conventional uranium projects in Utah and Colorado from NYSE American- and TSX-listed Energy Fuels.
CUR will acquire three permitted, past-producing mines in Utah, including Tony M, in the Henry Mountains, Daneros, in the White Canyon district and Rim mine, in the East Canyon portion of the Uravan mineral belt, as well as the Sage Plain property and eight DOE leases in Colorado.
The companies also agreed to enter into toll-milling and operating agreements with respect to the projects, which makes CUR the only company other than Energy Fuels to have secured guaranteed access to the White Mesa mill.
White Mesa is the only permitted and operating conventional uranium mill in the US.
“Our strategy has been to acquire uranium projects around the world, create critical mass, and target the acquisition of larger, more advanced projects. While the recently announced acquisition of the high-grade Matoush project, in Quebec, was a big step forward for CUR, today's acquisition and alliance with Energy Fuels represents a giant leap. In one transaction, we are entering the important US uranium sector by acquiring past producing mines which are permitted and well positioned for a rapid restart when market conditions are right,” said CUR president and CEO Philip Williams.
Energy Fuels president and CEO Mark Chalmers will join the board of CUR, bringing decades of experience to the junior.
CUR will pay Energy Fuels $2-million at closing, C$6-million of deferred cash payable over time, C$5-million of deferred cash payable on commencement of commercial production, and such number of CUR shares that results in Energy Fuels holding 19.9% of the outstanding CUR common shares immediately after closing.
CUR will also pay Energy Fuels a management fee, along with a toll milling fee for ore produced at the projects in the future.