LAKEWOOD, CO, March 9, 2016 /PRNewswire/ - Energy Fuels Inc.
(NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company") is
pleased to announce that it has entered into an Underwriting
Agreement (the "Underwriting Agreement") with a syndicate of
underwriters led by Cantor Fitzgerald Canada Corporation ("Cantor"
as sole bookrunner), Haywood Securities Inc. and Roth Capital
Partners, LLC, under which the underwriters have agreed to buy on
an underwritten basis 4,375,000 units (the "Units"), each Unit
consisting of one common share (each a "Share") and one half of one
common share purchase warrant (each whole warrant a "Warrant"), at
a price of US$2.40 per Unit for gross
proceeds of US$10.5 million (the
"Offering"). Each Warrant will be exercisable for three years
following the closing date and will entitle the holder thereof to
acquire one Share upon exercise at an exercise price of
US$3.20 per Share. The Company
has granted the underwriters an option, exercisable at the offering
price until the closing date of the Offering, to purchase up to an
additional 15% of the base Units offered in the Offering (which may
be exercised for Units, Shares, Warrants or a combination thereof)
to cover over-allotments, if any, and for market stabilization
purposes. The Offering is expected to close on or about
March 14, 2016, subject to obtaining
customary TSX and NYSE MKT approvals.
The current intention is to use the net proceeds of the Offering
to: (i) continue to fund wellfield construction at the
Company's Nichols Ranch Project in Wyoming; (ii) continue to finance the
previously announced shaft sinking and evaluation at the Company's
high-grade Canyon mine project in Arizona; (iii) fund costs associated with the
proposed acquisition of Mesteña Uranium, LLC announced earlier this
week; (iv) fund the cash portion of the proposed acquisition of the
remaining 40% of the Roca Honda Project announced last week; and
(v) use any remaining funds for general corporate needs and working
capital requirements.
The Company intends to file a final prospectus supplement (the
"Supplement") in both Canada and
the United States to its Canadian
short form base shelf prospectus (the "Canadian Base Prospectus")
and its U.S. registration statement on Form F-10 (the "Registration
Statement"), both of which were filed on April 9, 2014. Before you invest, you
should read the prospectus in that registration statement and other
documents the Company has filed with the SEC for more complete
information about the Company and this offering. Copies of
the Supplement and the Underwriting Agreement will be, and the
Canadian Base Prospectus and the Registration Statement are,
available for free by visiting the Company's profiles on SEDAR at
www.sedar.com or EDGAR at www.sec.gov/edgar.shtml, as
applicable. Alternatively, investors may ask Cantor or the
Company to arrange to send them the Supplement, the Canadian Base
Prospectus or the Registration Statement by contacting, Cantor,
attention: Equity Capital Markets, 181 University Avenue, Suite
1500 Toronto, Ontario, M5H 3M7,
telephone: 416-350-5212, or the Company's Investor Relations
department at (303) 974-2140.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of,
Units, Warrants or Shares in any state or province in which such
offer, solicitation or sale would be unlawful, prior to
registration or qualification under the securities laws of any such
state, province, or other jurisdiction.
About Energy Fuels: Energy Fuels
is a leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels operates two of America's key uranium production centers, the
White Mesa Mill in Utah and the
Nichols Ranch Processing Facility in Wyoming. The White Mesa
Mill is the only conventional uranium mill operating in the U.S.
today and has a licensed capacity of over 8 million pounds of
U3O8 per year. The Nichols Ranch
Processing Facility, acquired in the Company's acquisition of
Uranerz Energy Corporation, is an in situ recovery ("ISR")
production center with a licensed capacity of 2 million pounds of
U3O8 per year. Energy Fuels also has
the largest NI 43-101 compliant uranium resource portfolio in the
U.S. among producers, and uranium mining projects located in a
number of Western U.S. states, including one producing ISR mine,
mines on standby, and mineral properties in various stages of
permitting and development. The Company's common shares are
listed on the NYSE MKT under the trading symbol "UUUU", and on the
Toronto Stock Exchange under the trading symbol "EFR".
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains certain "Forward-Looking
Information" and "Forward-Looking Statements" within the meaning of
applicable Canadian and United
States securities legislation, which may include, but is not
limited to, statements with respect to the expected closing date of
the Offering and the use of proceeds from the Offering. These
forward-looking statements can be identified by the use of
forward-looking terminology such as "intends", "may," "will,"
"plans," "believes," "anticipates," "expects," "estimates,"
"predicts," "potential," "continue," "opportunity," "goals," or
"should". All statements, other than statements of historical
fact, herein are considered to be forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the closing date of
the Offering (if any) or the use of proceeds from the Offering to
be different from those expressed by the forward-looking
statements. Factors that could cause such events to differ
from those anticipated in these forward-looking statements include
risks associated with: the Company's ability to satisfy the
conditions to closing of the Offering and to use the proceeds from
the Offering as expected, which could be affected by many of the
risks described under the caption "Risk Factors" in the Company's
Annual Information Form dated March 18,
2015, which is available for review on SEDAR at
www.sedar.com, in its Form 40-F, which is available for
review on EDGAR at www.sec.gov/edgar.shtml and in the
Supplement dated the date hereof and which will be available for
review on SEDAR and EDGAR shortly. Forward-looking statements
contained herein are made as of the date of this news release, and
the Company disclaims, other than as required by law, any
obligation to update any forward-looking statements whether as a
result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place
undue reliance on forward-looking statements.
The Company assumes no obligation to update the information
in this communication, except as otherwise required by
law.
SOURCE Energy Fuels Inc.