EFR:CC - Energy Fuels to sell Alta Mesa ISR project in $120M deal
Energy Fuels ( NYSE: UUUU ) said Monday it agreed to sell its Alta Mesa in-situ recovery project to enCore Energy for $120M, with $60M up front and $60M in a secured convertible note payable in two years from the closing, paying 8% annual interest.
The company expects to use the deal to fully finance much of its uranium, rare earth elements, vanadium and medical isotope business plans for the next 2-3 years without diluting shareholders.
Among the company's plans, Energy Fuels ( UUUU ) hopes to install rare earth separation infrastructure at the White Mesa Mill, including the expected capacity to produce 500-1,000 metric tons/year of separated light rare earth oxides by the end of 2023 or early 2024.
"There are more than enough reasons to believe that uranium prices are going to move higher and head to $55-plus per pound sooner rather than later," boosting Energy Fuels ( UUUU ), Michael Wiggins de Oliveira writes in an analysis published recently on Seeking Alpha .
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Energy Fuels to sell Alta Mesa ISR project in $120M deal