US-based Energy Fuels plans to sell its North Reno Creek uranium project in Wyoming to Uranium Energy Corporation (UEC) for $5.39m, consolidating UEC's position in the region. The property is adjacent to the fully permitted Reno Creek project, which UEC acquired earlier this year.
UEC will get 100% of the North Reno Creek properties under a definitive purchase agreement with Energy Fuels' wholly owned subsidiary Uranerz. North Reno Creek, previously reported NI 43-101-compliant measured and indicated resources of 4.3m lbs U3O8 (1654tU), will boost Reno Creek's combined resource by 20%, UEC said.
Energy Fuels operates the Nichols Ranch ISL project in Wyoming, and the USA's only operating conventional uranium mill, White Mesa in Utah. In 2016, the company set out a revised business plan prioritising the development of Canyon uranium mine in Arizona, and now considers the North Reno Creek properties to be non-core to its current and future uranium operations.
Energy Fuels said its other low-cost ISL uranium properties in Wyoming, including Nichols Ranch, Jane Dough and Hank, could be brought into production "much sooner". It added that the North Reno Creek sale would not impact on those or Energy Fuel's other ISL properties in Wyoming's Powder River Basin - West North Butte, North Rolling Pin, and the Arkose Mining Venture.
Energy Fuels CEO Stephen Antony said: “During today's low uranium prices, Energy Fuels enjoys a number of potential revenue-generating opportunities, along with a supportive administration in Washington DC, that we believe recognises the importance of maintaining a healthy US uranium mining industry.” At the end of September, the company had US$32.7m of working capital. The company posted a net loss of $4.77m on revenue of $5.50m.