logo
Share SHARE
FONT-SIZE Plus   Neg

Energy Fuels Signs LoI To Acquire Strathmore Minerals

Energy Fuels Inc. (EFR.TO) 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
Delta Air Lines Inc. (DAL) pilots, represented by the Air Line Pilots Association International, are picketing on Friday at several airports across the country. The pilots said the picketing was to raise the sense of urgency in ongoing contract negotiations. The negotiations between the pilots... Charter Communications, and its recently acquired subsidiary Time Warner Cable, have been regularly overcharging its consumers to a tune of $7.2 million per year, according to a report from the U.S. Senate's Permanent Subcommittee on Investigations. According to the report, Time Warner Cable over-billed... Popular photo sharing network Instagram is adding a new translation button on its pages, so that the global crowd can read and enjoy the captions and comments given for the photographs uploaded. The new update will be available from next month onward.
comments powered by Disqus
Follow RTT