TORONTO: Uranium producer Energy Fuels Incorporation agreed to buy Uranerz Energy Corporation in an all stock deal valued $150 million that will create one of the largest uranium companies in the US.
Colorado based Energy Fuels Lakewood said the combined company’s scale will position it as a key uranium supplier to the US nuclear energy industry. The deal is also expected to result in significant cost savings. Both companies have struggled with profitability amid low uranium prices.
Energy Fuels, operates the only conventional uranium mill in the US, while Uranerz uses a process in which leaching solution extracts uranium from sandstone uranium deposits in the Powder River Basin area of Wyoming.
Further shareholders of Uranerz will receive 0.255 Energy Fuels shares, worth $1.57 at Friday’s closing price, for each share of Uranerz, representing a 37% premium to Uranerz’s closing price on Friday.
