Uranium Energy (UEC) has agreed to acquire Uranium One Americas (U1A) in a deal that will result in the formation of the largest US uranium mining company.
The deal consideration includes $112m in cash and the replacement of $19m in reclamation bonding.
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U1A owns seven uranium projects in the Powder River Basin and five projects in the Great Divide Basin, all located in Wyoming, US.
The company is a unit of Canadian uranium company Uranium One, which itself is a part of Russia’s state atomic energy firm Rosatom and is said to be the fourth-largest uranium producer worldwide.
This sale is part of Uranium One’s plan to optimise its uranium mining asset portfolio.
UEC CEO Amir Adnani said: “The opportunity to acquire an advanced asset base of this quality from one of the global leaders in the nuclear energy sector is highly rare in the uranium sector anywhere in the world, let alone in our own home jurisdiction of the United States.
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By GlobalData“The purchase price is equal to only 12% of our current enterprise value, yet the acquisition doubles the size of our production capacity in three key categories: total number of permitted US ISR projects, resources, and processing infrastructure.”
Uranium Energy said that the deal would create hub-and-spoke operations for UEC in Wyoming, anchored by U1A’s Irigaray plant.
The Irigaray central processing facility has an annual licensed capacity of 2.5Mlb U3O8.
According to Adnani, the assets considered for acquisition represent some of the lowest cost ISR projects in the US.
The deal is anticipated to increase the firm’s US ISR production profile to 6.5Mlb U3O8 a year. This is based on the licensed capacity of UEC’s Wyoming and South Texas hub-and-spoke operations.
Adnani noted: “Combined with our physical uranium holdings of 4.1Mlb of U.S. warehoused uranium, we now have the unparalleled ability to provide reliable domestic supply to the U.S. Uranium Reserve, as well as re-emerging demand from American and global nuclear utilities.”
The transaction is subject to regulatory approvals.
