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Energy Fuels shares tick higher as it sells non-core assets for $5.39mln

They will be sold to Uranium Energy Corp (UEC) for a price of $5.39mln, to include $2.94mln in cash and $2.45mln in shares of UEC.
Energy Fuels shares tick higher as it sells non-core assets for $5.39mln
Uranium is used in nuclear reactors.....

Shares in uranium producer Energy Fuels Inc (TSE:EFR) ticked up higher in Toronto as it struck a deal to sell some non-core properties in Wyoming for  $5.39mln.

They will be sold to Uranium Energy Corp (UEC) for a price of $5.39mln, to include $2.94mln in cash and $2.45mln in shares of UEC.

"At a time when companies are experiencing weak uranium markets, we are pleased to realize significant value from non-core uranium properties that are not a part of Energy Fuels' long-term business plan," said Stephen P. Antony,  chief executive at Energy Fuels.

"The proceeds from the sale will significantly enhance our working capital position, and we look forward to closing this transaction," he added.

The disposed properties are next to the Reno Creek project, which was recently acquired by UEC.

Energy considers them to be non-core to its current and future uranium recovery operations.

As a stand-alone project, they would require extensive permitting and licensing work, and significant time and capital to bring them to production.

They are estimated to contain 3.8 million tons of measured and indicated mineral resources with an average grade of 0.06 per cent triuranium octoxide equivalent (eU3O8) containing around 4.3 million pounds of uranium.

Energy noted it already holds significant low-cost ISR (in-situ recovery) uranium assets in Wyoming, that are currently producing or  can be brought into production much sooner

"This sale will not impact Energy Fuels' higher-grade Nichols Ranch, Jane Dough, Hank, West North Butte, North Rolling Pin and the Arkose Mining Venture ISR properties," it said.

In total, those properties hold 4.6 million tons of measured and indicated mineral resources with an average grade of 0.12 per cent eU3O8 containing around 10.7 million pounds of uranium.

There is also a further 3.4 million tons of inferred mineral resources with an average grade of 0.10 per cent eU3O8 containing 7.1 million pounds of uranium, it added.

Energy fuels shares added 1.12% in Toronto to stand at C$1.81 each.

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