The mining companies Energy Fuels and Magnum Uranium have entered into a definitive arrangement agreement to implement the acquisition of Magnum by Energy Fuels (originally announced on March 30, 2009). This will result in the combination of Energy Fuels’ 18,630 ha of highly prospective uranium and vanadium properties located in the US states of Colorado, Utah and Arizona and its pipeline of additional development prospects, with Magnum’s uranium holdings in the Western United States (Wyoming, Utah, Idaho and New Mexico) and in Canada’s Athabasca Basin.
Pursuant to the agreement, the parties will complete a plan of arrangement whereby Energy Fuels will acquire all of the outstanding shares of Magnum Uranium on the basis of 0.78 shares of Energy Fuels for each Magnum Uranium share. Based on the currently outstanding shares of Magnum Uranium, Energy Fuels would issue around 23.33 million shares to acquire all of the currently outstanding Magnum Uranium shares. It is anticipated that the transaction will close on or about June 30, 2009. Completion of the transaction is conditional upon satisfaction of various conditions precedent, including receipt of all required court and regulatory approvals.
“The execution of the arrangement agreement marks an important milestone for Magnum and its shareholders. Our board of directors, being in receipt of an external fairness opinion, has unanimously concluded that this transaction is the best way to maximise the value of Magnum’s assets. Post-arrangement, shareholders will have exposure to a production-focused uranium company with an extensive asset base in the western United States.” stated Craig Lindsay, President and CEO of Magnum.
In addition, George Glasier, President and CEO of Energy Fuels said, “We are pleased to complete this important step towards consolidation of uranium assets in the Colorado Plateau. The combination with Magnum Uranium will enhance the property portfolio of Energy Fuels, add significant 43-101 resource to our potential mill feed inventory, and fit well with Energy Fuels’ plan to become the next North American conventional uranium producer.”
Energy Fuels is a Toronto-based uranium and vanadium mineral development company actively rehabilitating and developing formerly producing mines. Through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corp, it has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado, USA and Kanab, Utah, USA. Magnum Uranium is a Vancouver-based minerals exploration company focused on the acquisition and development of uranium assets in North America.