UEC Acquires Rosatom’s Uranium One Properties, Making the Biggest Uranium Miner in the U.S.
Uranium Energy (NYSE-AM: UEC) has agreed to purchase all of Uranium One Americas Inc.’s (U1A) outstanding shares for a total purchase cost of US$ 112 million, which includes cash and the substitution of US$ 19 million in reclamation debt.
The fourth-largest uranium producer in the world, U1A is a division of Uranium One Inc., a state-owned nuclear energy business in Russia.
The majority of the U1A assets are located in Wyoming’s Powder River Basin, the most fruitful in-situ recovery (ISR) uranium mining region in the western hemisphere.
The U1A portfolio consists of seven projects, three of which are completely sanctioned. The total historical resource is thought to be 37.6 million pounds of U3O8 determined and indicated, plus 4.3 million pounds of U3O8 estimated.
UEC CEO Amir Adnani said in a news statement that the chance to purchase a sophisticated asset base of this calibre from one of the world pioneers in the nuclear energy sector is extremely uncommon in the uranium business anywhere in the globe, let alone in our own home jurisdiction of the United States.
Adnani commented on the transaction’s value by pointing out that although it only increased UEC’s capacity to produce in three crucial areas—the total number of authorised US ISR projects, resources, and processing infrastructure—the acquisition cost was only equivalent to 12% of the company’s current enterprise value.
With the Irigaray plant, one of the biggest central processing facilities in the US with a licenced capacity of 2.5 million pounds U3O8 per year, as its focal point, the acquisition would develop UEC’s hub-and-spoke activities in Wyoming.
UEC would combine with its own approved Reno Creek ISR project U1A’s production-ready assets, which includes Christensen Ranch ISR project with four entirely installed wellfields, and six more authorised or development-stage satellite ISR projects.
In addition, the business anticipates “significant capital expenditure savings and deep operating synergies” as a result of the construction of the Reno Creek ISR project, which will be located 72 kilometres from the Irigaray plant.
With fast restart potential, the recently purchased assets, in Adnani’s opinion, constitute some of the least expensive ISR projects in the US and would raise UEC’s output profile to 6.5 million pounds of U3O8 annually based on the licenced and installed capacity of its Wyoming along with South Texas activities.
The deal makes UEC the biggest uranium mining corporation in the United States during a time when clean-air nuclear energy is increasingly supported on a national and international level.
Former US Energy Secretary and UEC Chairman Spencer Abraham stated in the statement that they had been working for a long time to obtain this significant portfolio and that seeing it come to fruition would be wonderful for their organisation. They believe that this accomplishment would hasten and increase the growth of American uranium production, which might supply uranium of US origin for all of America’s uranium needs.
Following the announcement of the novel uranium asset acquisition, UEC’s shares was dropped 1.3% as of 12:10 p.m. EDT. Market value of the business is $1.3 billion.
Originally published by: mining.com
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