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Thu May 30, 2013
Energy Fuels to acquire smaller uranium company
Energy Fuels Inc. plans to acquire Strathmore Minerals Corporation, a move that will establish Energy Fuels as one of the biggest uranium companies in the U.S. The organizations have signed a letter of intent, under which Strathmore shareholders will end up owning about 20% of Energy Fuels shares.
CEO of Strathmore, David Miller, says the companies are a good match for each other. Both organizations have Wyoming projects.
“We have synergy in our two main projects. Our one in New Mexico, Roca Honda, with our brand new Utah mill, and our Gas Hills uranium deposits with their Sheep Mountains uranium deposits, both in Fremont County,” says Miller.
Miller says the current state of the uranium market is prime for such mergers and acquisitions: “That’s just a reflection of the marketplace, where it is now. All the uranium companies’ stock prices are very low. That’s where M&A activities start. They happen when prices are low and people are trying to consolidate, look into the future, where the industry is going and where the individual companies are going.”
Miller says the acquisition should contribute to the companies’ shared goal of value creation.