(Toronto, Ontario) – Energy Fuels Inc. and Strathmore Minerals Corp. are pleased to announce the completion of the company’s acquisition of Strathmore. In this previously announced transaction, Energy Fuels acquired, by way of a plan of arrangement, all of the issued and outstanding shares of Strathmore. The arrangement was completed under the Business Corporations Act (British Columbia) and was previously approved by the Supreme Court of British Columbia. Under the arrangement, which took effect at 11:59 p.m. (Toronto time) on August 30, 2013, Strathmore shareholders received 1.47 common shares of Energy Fuels for each common share of Strathmore held, and now own approximately 19.5 percent of the common shares of Energy Fuels currently outstanding.
Also effective as of the closing, Energy Fuels increased the size of its board of directors to eleven (11) directors. Steven Khan, the former President and a Director of Strathmore, and Eun Ho Cheong, the Vice President Overseas Resources Project Development for Korea Electric Power Corporation, have been appointed as directors.
Stephen P. Antony, President and CEO of Energy Fuels commented: “Energy Fuels’ acquisition of Strathmore Minerals is an important step toward achieving our goal of becoming the dominant uranium producer within the US, which is the world`s largest nuclear power market and heavily dependent on imported uranium for over 90% of its supply requirements. Energy Fuels possesses a large, unique portfolio of US uranium assets, which should grow in strategic importance, as we believe the US will increasingly focus on secure, domestic energy supplies. In my opinion, the need for a secure, domestic supplier of uranium for the US market will be underscored following the expiration later this year of the US-Russia HEU agreement, which currently provides approximately half of the uranium supply imported into the US. In the past 15 months, we have grown to become the second largest uranium producer in the U.S., with expected production of approximately 1.15 million lbs. of U3O8 during FY-2013. Furthermore, I believe Energy Fuels now has the potential over time to increase our production, as market conditions warrant, to four to five times current FY-2013 levels, which I believe would represent industry leading production growth potential on a global scale. I am very excited about the future prospects for Energy Fuels and our shareholders, and I look forward to sharing the reasons for my enthusiasm with fellow shareholders on a conference call later this week.”