Energy Fuels Announces US$16.6 Million Common Share Bought Deal
Energy Fuels Announces US$16.6 Million Common Share
Bought Deal
LAKEWOOD, CO
,
Feb. 13, 2020
/CNW/ -
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) ("Energy Fuels" or the
"Company")
is pleased to announce that it has entered into an underwriting agreement (the "Underwriting Agreement") with
Cantor Fitzgerald & Co., as lead underwriter, sole book-runner and representative of the other underwriters, under which it has
agreed to purchase, on a bought deal basis,
US$16.6 million
of common shares of the Company at a price of
US$1.47
per
share (the "Firm Shares"). The Company has also granted the underwriters an option to purchase up to an aggregate of
approximately
US$2
.5 million of additional common shares of the Company (the "Option Shares", and together with the Firm
Shares, the "Offered Shares", and the "Offering") by providing notice to the Company within thirty (30) days of the date of the
Underwriting Agreement. The Offering is expected to close on or about
February 20, 2020
, subject to customary closing
conditions.
Use of Proceeds of the Offering
The Company intends to use the net proceeds of the Offering to provide the Company with additional financial flexibility and
enhanced options with respect to any or all of the following: (i) to fund various activities required to increase uranium and/or
vanadium production at the Company's properties in response to the President of
the United States'
budget for fiscal year
2021, including: wellfield construction and other enhancements at the Company's Nichols Ranch ISR Project in
Wyoming
,
development and mining activities at the Company's La Sal Complex in
Utah
, development and mining activities at the
Company's Canyon Mine in
Arizona
, exploration drilling, development activities and wellfield construction at the Company's Alta
Mesa Project in
Texas
, exploration, permitting and development activities at the Company's other projects, and various capital
and sustaining capital expenditures at the Company's White Mesa Mill and other projects; (ii) to continue to pursue additional
revenue-generating activities at the White Mesa Mill, including alternate feed material processing and land clean-up activities;
(iii) to continue to finance evaluation of the high-grade uranium and copper mineralization at the Company's Canyon Mine,
including further evaluation of processing options at the White Mesa Mill for the copper resources; (iv) to continue permitting
the Company's projects, including
Roca Honda
; (v) to repay all or a portion of the Company's convertible debentures; (vi) for
general corporate needs and working capital requirements; and/or (vii) to retain all or a portion of the net proceeds of the
Offering in cash and/or marketable securities as collateral for advances under any credit facility that may be used by the
Company for any of the foregoing purposes, and if necessary to repay any advances under such credit facility. However,
management of Energy Fuels will have discretion with respect to the actual use of the net proceeds of the Offering, and there
may be circumstances where, for sound business reasons, a reallocation of the net proceeds is necessary.
The Offered Shares are being offered in
the United States
pursuant to a prospectus supplement to the Company's shelf
registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (the "Commission") and
became effective on
December 26
, 2018. The Offered Shares are being offered in
Canada
pursuant to a prospectus
supplement to the Company's final short form base shelf prospectus dated
December 27, 2018
, which was filed in each of the
provinces of
Canada
other than
Quebec
.
Before investing, you should read the prospectus supplements and other documents the Company will file with the Commission
and the Canadian Securities regulators for more complete information about the Company and the Offering. Copies of the
prospectus supplements will be available for free by visiting the Company's profiles on EDGAR at
www.sec.gov/edgar.shtml
or
SEDAR at
www.sedar.com
, as applicable. Alternatively, investors may ask Cantor Fitzgerald & Co. or the Company to send
them the prospectus supplements, when available, by contacting the Company's Investor Relations department at: (303) 974-
2140 or Cantor Fitzgerald Canada Corporation in
Canada
, attention: Equity Capital Markets, 181 University Avenue, Suite
1500,
Toronto, ON
, M5H 3M7, email:
; or Cantor Fitzgerald & Co., Attention: Equity Capital Markets,
499 Park Avenue, 6th Floor,
New York, New York
, 10022 or by email at
.
This press release shall not constitute an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of, the
Offered Shares in any state or province in which such offer, solicitation or sale would be unlawful, prior to registration or
qualification under the securities laws of any such state, province, or other jurisdiction.
About Energy Fuels
: Energy Fuels is a leading US-based uranium mining company, supplying U
3
O
8
to major nuclear
utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant. Its corporate
offices are near
Denver, Colorado
, and all of its assets and employees are in
the United States
. Energy Fuels holds three of
America's key uranium production centers, the White Mesa Mill in
Utah
, the Nichols Ranch in-situ recovery ("ISR") Project in
Wyoming
, and the Alta Mesa ISR Project in
Texas
. The White Mesa Mill is the only conventional uranium mill operating in
the U.S. 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. The Nichols Ranch ISR Project is in operation and has a licensed capacity of 2 million
pounds of U
3
O
8
per year. The Alta Mesa ISR Project is currently on standby. In addition to the above production facilities,
Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in
the United States
, 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."
Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain "Forward Looking
Information" and "Forward Looking Statements" within the meaning of applicable Canadian and
United States
securities
legislation, which may include, but is not limited to, statements with respect to: the expected use of proceeds and closing
date of the Offering. 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 statements with respect
to: the expected use of proceeds and closing date of the Offering
;
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.shtml
, on SEDAR at
www.sedar.com
, 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:
Energy Fuels Inc.: Curtis Moore - VP - Marketing & Corporate Development, (303) 974-2140 or Toll
free: (888) 864-2125, [email protected], www.energyfuels.com
CO: Energy Fuels Inc.
CNW 16:36e 13-FEB-20