Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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.

Register
To receive FREE breaking news email alerts for Energy Fuels Inc. J and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Oracle Corp. said Wednesday after the markets closed that its second quarter profit fell 2% from last year, hurt mainly by higher income tax expenses even as revenue increased 3%. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. Apple's iPhone-based Apple Pay system is gaining momentum nationwide with a host of new banks and retailers signing on. The system allows users to link a credit card directly to their device for payments and Apple now says they have deals with banks that account for 90 percent of the debit card transactions in the US. The current drop in fuel prices could lead to a major sales dip for electric automaker Tesla, according to some industry experts. The Elon Musk led manufacturer had predicted sales of over 500,000 new vehicles by 2020, but now that number could fall by as much as 40 percent.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.