Energy Fuels Inc. has entered into a definitive agreement to acquire Mesteña Uranium LLC.
Mesteña is a closely held uranium producer that operates the Alta Mesa ISR Project in Brooks and Jim Hogg counties, Texas. Energy Fuels will issue 4.55 million common shares of the company to the owners of Mesteña.
The transaction is expected to close before May 5, 2016, subject to the receipt of all applicable regulatory and stock exchange approvals and the satisfaction of certain other conditions to closing.
The key points in the transaction includes that the acquisition of Mesteña will further cement Energy Fuels’ position as the dominant integrated uranium producer in the country. Alta Mesa, a fully permitted and constructed In Situ Recovery (ISR) operation and processing facility, will diversify Energy Fuels’ operations into a third production center, along with the Nichols Ranch ISR Project in Wyoming and the White Mesa Mill Project in Utah.
Alta Mesa is ready to resume production as market conditions warrant. It can reach commercial production levels with limited required capital within six months of a production decision.
It produced a total of 4.6 million pounds of uranium between October 2005 and November 2013, including 1 million pounds of uranium per year over a two-year period.