Energy Fuels Acquires RadTran LLC as A Further Step Toward Addressing the Global Industry Need For Medical Radioisotopes in Emerging Cancer Treatments Acquisition intended to enhance Energy Fuels' current capabilities and support announced plans for medical isotope development
Energy Fuels Acquires RadTran LLC as A Further Step Toward Addressing
the Global Industry Need For Medical Radioisotopes in Emerging Cancer
Treatments
Acquisition intended to enhance Energy Fuels' current capabilities and support announced plans for medical isotope development
.
LAKEWOOD, Colo.
,
Aug. 19, 2024
/CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("
Energy Fuels
"), an industry leader in uranium and rare
earth elements ("
REE
") production for the energy transition, today announces the
August 16, 2024
acquisition (the "
Acquisition
") of RadTran LLC ("
RadTran
"), a
private company specializing in the separation of critical radioisotopes, to further Energy Fuels' plans for development and production of medical isotopes used in
cancer treatments. RadTran's expertise includes separation of radium-226 ("
Ra-226
") and radium-228 ("
Ra-228
") from uranium and thorium process streams.
This strategic acquisition is expected to significantly enhance Energy Fuels' planned capabilities to address the global shortage of these essential isotopes used in
emerging targeted alpha therapies ("
TAT
") for cancer treatment.
Mark Chalmers
, President and CEO of Energy Fuels said, "With this Acquisition, we will be combining our unique processing capabilities at the White Mesa Mill,
the only permitted and operating uranium mill in
the United States
, with over 40 years of chemical and metal separations experience, with RadTran's intellectual
property and medical isotope experience in radionuclide separation and concentration, which we believe will position Energy Fuels to be a leader in this developing
industry.
"Additionally, what I find exciting about this initiative is that Energy Fuels has the potential to recover valuable isotopes from its existing process streams, thereby
recycling back into the market material that would otherwise be lost to disposal and repurposing it for use in producing life-saving cancer treatments.
"And our current R&D activities are being conducted using existing Mill facilities without the need for capital improvements of any significance. Capital development
for future commercial production capabilities, upon successful production at the R&D level, would be expected to be supported by future offtake agreements for
radium production."
Since
July 2021
, Energy Fuels and RadTran have been working under a Strategic Alliance Agreement to evaluate the feasibility of recovering Ra-226 and Ra-228
from existing uranium process streams at Energy Fuels' White Mesa Mill in
Utah
(the "
Mill
"). Recovered Ra-226 and Ra-228 would be made
available to the pharmaceutical industry and others to enable the production of actinium-225 ("
Ac-225
"), lead-212 ("
Pb-212
") and potentially other leading
medically attractive TAT isotopes. These isotopes are critical components in the development of targeted alpha therapies, which offer promising new treatments
for various cancers. The global shortage of Ra-226 and Ra-228 currently presents itself as a significant barrier to the advancement and commercialization of
these therapies.
Energy Fuels received regulatory approval and licensing in 2023 for the concentration of R&D quantities of Ra-226 at the Mill and is currently completing
engineering on its research and development ("
R&D
") pilot facility for Ra-226 production. During 2024, Energy Fuels plans to set up the first stages of the pilot
facility and expects to produce R&D quantities of Ra-226 for testing by end-users of the product. Upon successful production of R&D quantities of Ra-226, Energy
Fuels plans to develop capabilities at the Mill for the commercial-scale production of Ra-226 and potentially Ra-228 in 2026-2028, conditional on completion of
engineering design, securing sufficient offtake agreements for final radium production, and receipt of all required regulatory approvals.
Under the Acquisition, the purchase price payable by Energy Fuels to the owners of RadTran consists of (all dollar amounts in US$): (i) on closing,
$1.5 million
in
cash,
$1.5 million
in Energy Fuels common shares ("
Common Shares
") and the grant of a 2% royalty on future revenues from the sale of produced radium, as
well as certain other contractual commitments; and up to an additional
$14 million
in cash and Common Shares based on the satisfaction of a number of
performance-based milestones, including achieving initial production, securing suitable offtake agreements to justify commercial production and reaching
commercial production.
In addition, as part of the Acquisition, Saleem Drera PhD, President and CEO of RadTran, will join Energy Fuels as Vice President of Radioisotopes, Radiological
Systems, and Intellectual Property. In this role, Dr. Drera will lead Energy Fuels' efforts to integrate RadTran's proprietary technology, which includes a number of
patents, pending patents, trade secrets and know-how relating to efficient separation of Ra-226 and Ra-228 from process streams, and drive innovation in the
production of medical radioisotopes.
The demand for Ra-226 and Ra-228 is underscored by the extensive clinical research currently underway. More than 30 clinical trials are evaluating Ac-225, a
product of Ra-226 and a crucial component of targeted alpha therapies, highlighting the urgent need for reliable isotope supply. Notably, several of these trials
have reached final pre-approval stage (phase 3) targeting neuroendocrine tumors and leukemia, with many more earlier stage trials already initiated to address
common cancers including prostate cancer.
Critically, a shortfall in Ac-225 production (for which Ra-226 is the limiting raw material), is now delaying trials and challenging the transition to full commercial and
clinical availability of these drugs. Energy Fuels intends to step in to alleviate this supply bottleneck and support development of this important new class of life-
saving cancer therapies.
Saleem Drera
, President and CEO of RadTran, and now Vice President Radioisotopes, Radiological Systems and Intellectual Property of Energy Fuels, said, "At
RadTran, we are proud to be a part of the Energy Fuels team. The White Mesa Mill's facilities, permits and licenses, and Energy Fuels' years of experience are
Ideally suited to employ RadTran's Technology. Furthermore, we have been impressed with their successful endeavors to separate and concentrate uranium,
vanadium and rare earth elements in a manner that adheres to the strictest standards of protection of human health, safety and the environment."
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in
the United States
, mines uranium and
produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began
production of advanced rare earth element ("
REE
") materials, including mixed REE carbonate in 2021, and commenced production of commercial quantities of
separated REEs in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of
radionuclides needed for emerging cancer treatments. Its corporate offices are in
Lakewood, Colorado
, near
Denver
, and substantially all its assets and
employees are in
the United States
. Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in
Utah
and the Nichols Ranch
in-situ recovery ("
ISR
") Project in
Wyoming
. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of
over 8 million pounds of U
3
O
8
per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various
uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U
3
O
8
per year. The Company recently
acquired the Bahia Project in
Brazil
, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite)
minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and
several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for
Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto
Stock Exchange under the trading symbol "EFR." Energy Fuels' website is
www.energyfuels.com
.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain "Forward Looking Information" and "Forward Looking
Statements" within the meaning of applicable
United States
and Canadian securities legislation, which may include, but are not limited to, statements with
respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as the leading producer of uranium
in the U.S.; any expectation that the Company will complete engineering on its R&D pilot facility for the production of Ra-226 at the Mill, will set up the first
stage of the pilot facility, and produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product or at all; any expectation that the Company's
evaluation of radioisotope recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any radioisotopes
recovered at the Mill will be feasible; any expectation that any radioisotopes that can be recovered at the Mill will be sold on a commercial basis; any
expectation that the Acquisition will significantly enhance Energy Fuels' capabilities to address the global shortage of the essential isotopes used in emerging
TAT cancer treatments; any expectation that RadTran's technology will enable the efficient separation of Ra-226 and Ra-228 from process streams, or will
transform them into valuable sources for medical use; any expectation that the development of TAT therapies will be successful or will offer promising new
treatments for various cancers; any expectation that Energy Fuels will be or become at the forefront of the medical radioisotope supply chain; any expectation
that any additional licensing for the R&D or commercial production of Ra-226, Ra-228 or any other radioisotopes at the Mill will be obtained on a timely basis or
at all; any expectation as to the supply of or demand for Ra-226 and/or Ra-228 or any other isotopes; any expectation as to the successful approval or the
timing of approval of any medical isotopes or TAT therapeutics; any expectation that Energy Fuels will step in to alleviate any supply bottlenecks or support
development of TAT therapies; any expectation that Energy Fuels will be a leader in the supply of radioisotopes for TAT therapeutics; any expectation as to
capital requirements for Energy Fuels' R&D and potential commercial radium production facilities; any expectation that future capital requirements will be
supported by offtake agreements for radium production; and any expectation that Energy Fuels' operations will be or continue to be performed in a manner that
adheres to the strictest standards for protection of human health, safety and the environment. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts,"
"intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may,"
"could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are
considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or
implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements
include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays;
permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill;
competition from other producers; public opinion; government and political actions; market factors, including future demand for radium; the ability of the Mill to
recover radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the
caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at
www.sec.gov/edgar
, on
SEDAR+ at
www.sedarplus.ca
, and on the Company's website at
www.energyfuels.com
. Forward-looking statements contained herein are made as of the date
of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of
new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information
in this communication, except as otherwise required by law.
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SOURCE
Energy Fuels Inc.
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For further information:
Media and Investor Inquiries: Energy Fuels Inc., Kim Ronkin Casey, Investor Relations Manager, 303-389-4165 or Toll free: (888) 864-
2125, [email protected], www.energyfuels.com
CO: Energy Fuels Inc.
CNW 08:30e 19-AUG-24