Uranium Energy Corp (UEC) has finalised the acquisition of Rio Tinto's Wyoming uranium assets including the Sweetwater plant and uranium mining properties.
The transaction, valued at approximately $175.4m, was funded by UEC's available liquidity. In connection with the transaction, UEC enlisted Goldman Sachs & Co. and Rothschild & Co. as its financial advisors, while Holland & Hart and McMillan provided legal counsel.
The assets include a portfolio of uranium mining properties including the Red Desert and Green Mountain projects, with a combined historic resource estimate of 175mlb of U3O8.
UEC president and CEO Amir Adnani said: “The transaction presents a rare opportunity to acquire US licensed facilities and uranium mining properties from a leading global miner. These assets will significantly enhance and accelerate UEC’s production capabilities in Wyoming’s Great Divide Basin.
“The Sweetwater Plant, a 3,000-ton-per-day processing mill with a licensed capacity of 4.1mlb U3O8 annually, can also be adapted to recover uranium from loaded resins produced by in-situ-recovery (ISR) operations, offering UEC the flexibility to support both ISR and conventional mining. With the addition of the Sweetwater Plant, UEC has the largest licensed production capacity in the US.”
The Red Desert Project spans approximately 20,005 acres in the Great Divide Basin, comprising unpatented mining claims, patented lands and state uranium leases. It holds an estimated 42mlbs of U3O8 across three deposits.
The Green Mountain project, located 22 miles north of the Sweetwater plant, covers around 32,040 acres with an estimated 133mlb of U3O8 across five deposits.
The Sweetwater plant is situated near Rawlins, Wyoming, and has been maintained since its operation from 1981 to 1983.
The plant is the only conventional processing mill in Wyoming, with potential for ISR mining and further discoveries in nearby shallow mineralisation.
The plant's infrastructure includes well-maintained buildings, equipment and utilities. There is potential for adapting the plant for uranium recovery from loaded resins produced by ISR operations, pending necessary permit modifications.
