Energy Fuels Completes Acquisition of 16.5% Interest in Virginia Energy
TORONTO, ONTARIO -- (Marketwire) -- 01/28/13 -- Energy Fuels Inc.
(TSX:EFR) ("Energy Fuels" or the "Company") is pleased to announce
that the Company has completed its acquisition of a 16.5% interest in
Virginia Energy Resources Inc. (TSX VENTURE:VUI)(OTCQX:VEGYF)
("Virginia Energy") as a part of a non-brokered private placement
financing previously announced by the Company and Virginia Energy in
a joint news release dated December 28, 2012.
As previously announced, Energy Fuels acquired 9,439,857 common
shares of Virginia Energy at a price of Cdn$0.42 per share, for an
aggregate subscription price of Cdn$3,964,739.94. The subscription
price was satisfied by a combination of $250,000 of cash and the
issuance of 21,851,411 common shares in the capital of the Company.
However, as a result of Virginia Energy's expansion of the original
financing, Energy Fuels' acquired interest in Virginia Energy
represents 16.5% of the currently outstanding common shares of
Virginia Energy (rather than the previously announced 19.9%).
The Company acquired the shares of Virginia Energy for investment
purposes, and has no current intention of acquiring additional
securities of Virginia Energy. No other person acted jointly or in
concert with the Company in connection with its acquisition of shares
of Virginia Energy.
Pursuant to the subscription agreement with Virginia Energy, for so
long as the Company owns at least 9.9% of the outstanding shares of
Virginia Energy, the Company has the right to participate in equity
financings by Virginia Energy in order to maintain its percentage
ownership. In addition, the Company has the right to nominate one
director for election or appointment to the Board of Directors of
Virginia Energy as long as it holds at least 5% of the issued and
outstanding Common Shares, increasing to 9.9% after 2 years. Graham
Moylan, Chief Financial Officer of Energy Fuels, will be appointed as
a director of Virginia Energy.
Virginia Energy owns 100% of the advanced-stage Coles Hill Project
located in south central Virginia, USA. Coles Hill is the largest
known uranium deposit in the United States with 119.6 million tons of
Indicated Resource with an average grade of 0.056% U3O8
133 million lbs. of U3O8. According to a September 2012 Preliminary
Economic Assessment ("PEA") posted on Virginia Energy's profile on
SEDAR, the Coles Hill Project has attractive expected economics,
including an Internal Rate of Return ("IRR") of 36.3%, a Net Present
Value ("NPV") of $427 million, and initial cash cost of $30.72/lb.
Cantor Fitzgerald Canada Corporation acted as the Company's financial
advisor in connection with this transaction. The Company will issue
270,270 common shares of the Company to Cantor Fitzgerald in partial
satisfaction of financial advisory fees.
Stephen P. Antony, P.E., President & CEO of Energy Fuels, is a
Qualified Person as defined by National Instrument 43-101 and has
reviewed and approved the technical disclosure contained in this
About Energy Fuels: Energy Fuels is America's largest conventional
uranium producer, supplying approximately 25% of the uranium produced
in the U.S., and is also a significant producer of vanadium. The
company operates the White Mesa Mill, which is the only conventional
uranium mill currently operating in the U.S., capable of processing
2,000 tons per day of uranium ore. Energy Fuels has projects located
throughout the Western U.S., including producing mines and mineral
properties in various stages of permitting and development.
This news release contains certain "Forward-Looking Statements"
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended and "Forward-Looking Information"
within the meaning of applicable Canadian securities legislation,
which may include, but is not limited to, statements with respect to
the future financial or operating performance of the Company and its
projects. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" "does not expect", "is expected", "is likely", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"does not anticipate", or "believes", or variations of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur", "be achieved"
or "has the potential to". All statements, other than statements of
historical fact, included herein are generally considered to be
forward-looking statements. Forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements express or implied by the forward-looking statements.
Factors that could cause actual results to differ materially from
those anticipated in these forward-looking statements are described
under the caption "Risk Factors" in the Company's Annual Information
Form dated as of December 20, 2012, which is available for view on
the System for Electronic Document Analysis and Retrieval at
www.sedar.com. 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.
Energy Fuels Inc.
(303) 974-2140 or Toll free: 1-888-864-2125
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