Energy Fuels Resources to Acquire Properties Next to New Mexico Uranium Mine Project

Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Fuels Resources (TSX:EFR) (Toronto, Ontario) reports it is acquiring mineral properties next to the grassroot Roca Honda uranium-mining project in northwestern New Mexico.

Located six miles north of Grants, on land managed by the U.S. Forest Service and State of New Mexico, the project has a total investment value of $344 million. Roca Honda is a 60:40 joint venture by Energy Fuels and Sumitomo Corporation of Japan (Tokyo), respectively. Industrial Info is tracking six Energy Fuels Resources projects worth $1.13 billion.

The project, now in the permitting phase, has seen delays due to low uranium prices. Energy Fuels acquired the Roca Honda project as a part of its acquisition of Strathmore Minerals Corporation in August 2013. Construction kickoff is set for second-quarter 2016.

Roca Honda contains 1.51 million tons of measured and indicated resources, according to Energy Fuels, with an average grade of 0.48% U3O8 containing 14.56 million pounds of U3O8. It also has 1.2 million tons of inferred mineral resources, with an average grade of 0.47% U3O8 containing 11.21 million pounds of U3O8.

The mine would have an average run rate of 1,085 tons per day, to produce 2.6 million pounds per year of uranium for nine years.

On Thursday, Energy Fuels announced it had entered into a letter of intent with Uranium Resources Incorporated (NASDAQ:URRE) (URI) (Centennial, Colorado) to acquire mineral properties next to the Roca Honda project. The acquired properties, which total 4,580 acres, include fee mineral ownership of 640 acres, fee ownership of 36 unpatented lode-mining claims, and a leasehold interest on 131 unpatented lode-mining claims.

Energy Fuels will pay $2.5 million in cash to Uranium Resources, which also will receive $375,000 in Energy Fuels common stock; a royalty on certain uranium project properties in Wyoming, as well other royalties that can be repurchased by Energy Fuels for $500,000; and unpatented lode-mining claims. Completion of the deal is expected in June.

Stephen P. Antony the chief executive officer of Energy Fuels, said in a press release that the transaction makes the economics of the Roca Honda project more attractive.

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