LAKEWOOD, CO, Feb. 13, 2020 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU; TSX: EFR) ("Energy Fuels" or the
"Company") is pleased to announce that it has entered into an
underwriting agreement (the "Underwriting Agreement") with Cantor
Fitzgerald & Co., as lead underwriter, sole book-runner and
representative of the other underwriters, under which it has agreed
to purchase, on a bought deal basis, US$16.6
million of common shares of the Company at a price of
US$1.47 per share (the "Firm
Shares"). The Company has also granted the underwriters an option
to purchase up to an aggregate of approximately US$2.5 million of additional common shares
of the Company (the "Option Shares", and together with the Firm
Shares, the "Offered Shares", and the "Offering") by providing
notice to the Company within thirty (30) days of the date of the
Underwriting Agreement. The Offering is expected to
close on or about February 20, 2020,
subject to customary closing conditions.
Use of Proceeds of the Offering
The Company intends to use the net proceeds of the Offering to
provide the Company with additional financial flexibility and
enhanced options with respect to any or all of the following: (i)
to fund various activities required to increase uranium and/or
vanadium production at the Company's properties in response to the
President of the United States'
budget for fiscal year 2021, including: wellfield construction and
other enhancements at the Company's Nichols Ranch ISR Project in
Wyoming, development and mining
activities at the Company's La Sal Complex in Utah, development and mining activities at the
Company's Canyon Mine in Arizona,
exploration drilling, development activities and wellfield
construction at the Company's Alta Mesa Project in Texas, exploration, permitting and development
activities at the Company's other projects, and various capital and
sustaining capital expenditures at the Company's White Mesa Mill
and other projects; (ii) to continue to pursue additional
revenue-generating activities at the White Mesa Mill, including
alternate feed material processing and land clean-up activities;
(iii) to continue to finance evaluation of the high-grade uranium
and copper mineralization at the Company's Canyon Mine, including
further evaluation of processing options at the White Mesa Mill for
the copper resources; (iv) to continue permitting the Company's
projects, including Roca Honda; (v)
to repay all or a portion of the Company's convertible debentures;
(vi) for general corporate needs and working capital requirements;
and/or (vii) to retain all or a portion of the net proceeds of the
Offering in cash and/or marketable securities as collateral for
advances under any credit facility that may be used by the Company
for any of the foregoing purposes, and if necessary to repay any
advances under such credit facility. However, management of Energy
Fuels will have discretion with respect to the actual use of the
net proceeds of the Offering, and there may be circumstances where,
for sound business reasons, a reallocation of the net proceeds is
necessary.
The Offered Shares are being offered in the United States pursuant to a prospectus
supplement to the Company's shelf registration statement on Form
S-3 that was filed with the U.S. Securities and Exchange Commission
(the "Commission") and became effective on December 26, 2018. The Offered Shares are
being offered in Canada pursuant
to a prospectus supplement to the Company's final short form base
shelf prospectus dated December 27,
2018, which was filed in each of the provinces of
Canada other than Quebec.
Before investing, you should read the prospectus supplements and
other documents the Company will file with the Commission and the
Canadian Securities regulators for more complete information about
the Company and the Offering. Copies of the prospectus
supplements will be available for free by visiting the Company's
profiles on EDGAR at www.sec.gov/edgar.shtml or SEDAR at
www.sedar.com, as applicable. Alternatively, investors may
ask Cantor Fitzgerald & Co. or the Company to send them the
prospectus supplements, when available, by contacting the Company's
Investor Relations department at: (303) 974-2140 or Cantor
Fitzgerald Canada Corporation in Canada, attention: Equity Capital Markets, 181
University Avenue, Suite 1500, Toronto,
ON, M5H 3M7, email: ecmcanada@cantor.com; or Cantor
Fitzgerald & Co., Attention: Equity Capital Markets, 499 Park
Avenue, 6th Floor, New York, New
York, 10022 or by email at prospectus@cantor.com.
This press release shall not constitute an offer to sell nor a
solicitation of an offer to buy, nor shall there be any sale of,
the Offered 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
US-based uranium mining company, supplying
U3O8 to major nuclear utilities. The Company
also produces vanadium from certain of its projects, as market
conditions warrant. Its corporate offices are near Denver, Colorado, and all of its assets and
employees are in the United
States. Energy Fuels holds three of America's key uranium
production centers, the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery
("ISR") Project in Wyoming, and
the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only
conventional uranium mill operating in the U.S. today, has a
licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to produce
vanadium when market conditions warrant. The Nichols Ranch ISR
Project is in operation and has a licensed capacity of 2 million
pounds of U3O8 per year. The Alta Mesa ISR
Project is currently on standby. In addition to the above
production facilities, Energy Fuels also has one of the largest NI
43-101 compliant uranium resource portfolios in the United States, and several uranium and
uranium/vanadium mining projects on standby and in various stages
of permitting and development. The primary trading market for
Energy Fuels' common shares is the NYSE American under the trading
symbol "UUUU", and the Company's common shares are also listed on
the Toronto Stock Exchange under the trading symbol "EFR."
Cautionary Note 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 use of proceeds and closing date of the
Offering. 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,"
"budgets," "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 "have the potential to." 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 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 include risks associated with statements
with respect to: the expected use of proceeds and closing date of
the Offering; and the other factors described under
the caption "Risk Factors" in the Company's most recently filed
Annual Report on Form 10-K, which is available for review on EDGAR
at www.sec.gov/edgar.shtml, on SEDAR at
www.sedar.com, and on the Company's website at
www.energyfuels.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. The Company assumes no obligation to
update the information in this communication, except as otherwise
required by law.
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SOURCE Energy Fuels Inc.