logo
Share SHARE
FONT-SIZE Plus   Neg

Energy Fuels Signs LoI To Acquire Strathmore Minerals

Energy Fuels Inc. (EFR.TO: Quote) and Strathmore Minerals Corp. (STM.TO)(STHJF.PK) Friday announced the signing of a Letter of Intent pursuant to which Energy Fuels and Strathmore have agreed to pursue a transaction whereby Energy Fuels would acquire, by way of a plan of arrangement, all of the issued and outstanding common shares of Strathmore.

Under the terms of the LOI, Strathmore shareholders would receive 1.47 common shares of Energy Fuels for each common share of Strathmore held, resulting in the shareholders of Strathmore owning about 21% of the issued and outstanding shares of Energy Fuels upon completion of the deal.

The consideration represents a premium of 31% based on the 20-day volume weighted average prices on the TSX as of May 22.

Energy Fuels and Strathmore believe the deal will position the newly combined Energy Fuels as the premier pure-play U.S. uranium company, supported by significant current uranium production of 1.175 million lbs. for its current fiscal year, as well as a robust pipeline of development projects.

The U.S. remains the largest consumer of uranium globally, yet it is heavily reliant on imported uranium for over 90% of its supply requirements. Energy Fuels is well-positioned as a large, reliable source of uranium supply within the U.S., currently accounting for over 25% of estimated U.S. production.

Energy Fuels and Strathmore believe the deal will result in significant value creation for the shareholders of both companies through numerous synergies.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
US Steel Corp. (X) Tuesday said it will "adjust operations" and temporarily idle a part of its Minntac plant in Mt. Iron, Minnesota, effective June 1. According to reports, the move would see about 700 employees laid off. The company said the decision was due to its current inventory levels and ongoing... Hewlett-Packard Co. (HPQ) has filed a lawsuit against Michael Lynch, the co-founder of Autonomy Corp., and its former Financial Chief Sushovan Hussain for a whopping $5.1 billion alleging that the executives misrepresented the financial situation of Autonomy. An HP's spokeswoman confirmed that the... Nine acres of green grass with 400 trees and a half-mile-long walk way. We are not talking about any park, but the expansive rooftop of Facebook's new office. The 430,000 square feet office is a single room and it might be the largest open floor plan in the world.
comments powered by Disqus
Follow RTT