Uranium Energy has agreed to acquire Uranium One Americas from Uranium One Investments subsidiary Uranium One for $112m in cash.
The transaction also consists of the replacement of $19m in reclamation bonding.
Uranium One is claimed to be the world’s fourth-largest uranium producer and is part of Russia’s State Atomic Energy Corporation Rosatom.
Uranium One Americas’ assets are primarily situated in the Powder River Basin of Wyoming, which is said to be the most productive in-situ recovery (ISR) uranium mining district in the western hemisphere.
Uranium Energy said that the deal will position the company as the largest American uranium mining company and create “hub-and-spoke” operations in Wyoming, anchored by the Irigaray plant of Uranium One Americas.
The transaction covers Uranium One Americas’ production-ready assets such as Christensen Ranch ISR Project with four fully installed wellfields, and six additional permitted or development-stage satellite ISR projects, combined with Uranium Energy’s Reno Creek Project.
In addition, the deal allows Uranium Energy to add a land package of around 100,000 acres in Wyoming’s prolific uranium-producing Powder River and Great Divide Basins, which include multiple under-explored, mineralised brownfield projects.
Uranium Energy said that the acquisition secures about 37.6 million pounds U3O8 in historically estimated measured and indicated resources and 4.3 million pounds U3O8 in historically estimated inferred resources.
Uranium Energy president and CEO Amir Adnani said: “We are very pleased that after a comprehensive and competitive bidding process, Uranium One elected to work with UEC to undertake the successful sale of their substantial uranium assets in the US.
“This is a highly accretive transaction for UEC and represents great value to our shareholders. The purchase price is equal to only 12% of our current enterprise value, yet the acquisition doubles the size of our production capacity in three key categories: total number of permitted U.S. ISR projects, resources, and processing infrastructure.”
The completion of the transaction is subject to certain regulatory approvals.
VTB Capital is serving as a financial advisor to Uranium Energy on the transaction, while McMillan is serving as a Canadian legal advisor to UEC and Holland & Hart is serving as a US legal advisor to UEC.
Haywood Securities is serving as a financial advisor to Uranium One, while Dorsey & Whitney is serving as a US legal advisor to Uranium One.
