Uranium Energy Corp Completes Acquisition of Uranium One Americas; largest uranium mining company in the United States


Uranium Energy Corp. (UEC) recently acquired all issued and outstanding shares of Uranium One Americas (U1A), Inc. for an aggregate purchase price of $ 112 million in cash plus estimated additional working capital of $ 2.9 million (primarily prepaid insurance and land payments) and the assumption of $ 19 million in reclamation bond. Uranium One is the world’s fourth largest producer of uranium and is part of the Russian state atomic energy company, Rosatom.

UEC fully funded the acquisition with existing cash. After closing, UEC holds approximately $ 120 million in cash and cash equivalents.

U1A’s portfolio of projects being acquired includes, among other assets, seven projects in the Powder River Basin, three of which are fully licensed, and five in the Great Divide Basin. The portfolio consists of dozens of under-explored mineralized brownfield projects, supported by detailed databases of historical uranium exploration and development programs, greatly improving the potential for resource expansion.

We are very pleased to have concluded this very accretive transaction for UEC. The acquisition doubles our production capacity in three key categories: total number of US SRIs authorized [in-situ recovery] projects, resources and processing infrastructure. In addition, the opportunity to have acquired a state-of-the-art asset base of this quality from one of the world leaders in the nuclear energy industry is quite unique.

With this acquisition, UEC’s industry-leading US SRI production profile grows to 6.5 million U pounds.3oh8 per year based on the licensed and installed capacity of our Wyoming and South Texas hub operations. Combined with our physical uranium holdings of 4.1 million pounds of uranium stored in the United States, we now have the unmatched ability to provide a reliable domestic supply to the United States government as well as nuclear utilities while providing our shareholders exposure to the fastest growing, 100% unhedged and pure-play uranium business listed on the NYSE American.

—Amir Adnani, President and CEO

ISR is an injection solution extraction that reverses the natural process that deposited uranium in the sandstones. The site’s groundwater is enriched with gaseous oxygen and introduced into the body of uranium ore through a network of injection wells. The solution dissolves the uranium from the host sandstone.

The uranium solution is brought to the surface through production wells where the uranium is concentrated on resin beads to be trucked to the company’s Hobson processing plant for further concentration and yellowcake drying. for the market. This model of an injection and recovery well, along with the surrounding control wells that serve as protection, is called a well field.

U1A’s assets are primarily located in the Powder River Basin in Wyoming; the most productive in situ recovered uranium mining district in the western hemisphere. Other highlights of the acquisition are as follows:

  • The largest uranium mining company in the United States. Positions UEC, an American company headquartered in Texas, as the largest American uranium mining company.

  • Wyoming Hub and Spoke. Creates hub-and-spoke operations in Wyoming for UEC, anchored at U1A’s Irigaray plant, one of the largest central processing facilities in the United States with an authorized capacity of 2.5 million U pounds3oh8 per year.

  • Ready for production. Incorporates production-ready assets of U1A, including the ISR Christensen Ranch project with four fully installed wellfields and six other satellite ISR projects authorized or under development, combined with UEC’s Reno Creek project.

  • Synergies of Reno Creek. Expects significant capital expense savings and significant operating synergies with the licensed and near UEC Reno Creek ISR project, which is 45 miles from the Irigaray plant.

  • Expansion of resources. Raised around 37.6 million U pounds3oh8 in historically estimated measured and indicated resources and 4.3 million U pounds3oh8 in historically estimated inferred resources with considerable growth potential based on independent technical reports prepared for U1A.

  • Dominant Lands Package. The acquisition added approximately 100,000 acres to UEC’s current land pool in Wyoming, resulting in the company owning approximately 118,000 acres in the prolific Wyoming, Power River and Great Uranium Basins. Divide.

The UEC presented several initiatives aimed at integrating U1A assets into the UEC portfolio. They include:

  • The company plans to complete and submit new technical reports on late stage projects in the U1A portfolio as soon as possible for the purpose of establishing current resources, as historical U1A resources are not treated as current by UEC.

  • Advance technical studies to further develop Wyoming’s hub and spoke strategy in order to capture the significant investment savings and operating synergies expected with its Reno Creek project.

  • The U1A portfolio includes other brownfield mineralized projects that UEC intends to develop to generate technical resource reports.

  • Perform an operational review on the potential expansion of the Irigaray central processing plant.

  • In addition to Reno Creek, advance the Moore Ranch and Ludeman ISR projects in Wyoming as satellite production facilities as well as the company’s development plans in Burke Hollow in South Texas.

  • Examine and incorporate the significant tax loss carryforwards of U1 to be applied to offset future income.

Uranium Energy Corp is a United States-based uranium exploration and mining company that advances the next generation of ISR uranium mining projects. In South Texas, the company’s hub-and-spoke operations are anchored in the fully licensed Hobson processing facility, which is at the heart of the Palangana, Burke Hollow, Goliad and other ISR pipeline projects.

In Wyoming, UEC controls the Reno Creek project, which is the largest pre-construction ISR uranium project licensed in the United States.


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