LAKEWOOD, Colo., June 11, 2020 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the
"Company"), the largest uranium mining company in the United States, is pleased to announce that
it has delivered a notice to the holders of its currently
outstanding floating rate convertible unsecured subordinated
debentures, due December 31, 2020
(the "Debentures") that pursuant to the terms of the
indenture (the "Indenture") governing the Debentures,
the Company will redeem on July 14,
2020 (the "Redemption Date") Cdn$10,430,000 principal amount of the
Cdn$20,860,000 Debentures
outstanding. The Debentures are redeemable for an amount equal to
101% plus accrued and unpaid interest thereon, up to but excluding
the Redemption Date. Following the partial redemption, Cdn$10,430,000 aggregate principal amount of the
Debentures will remain outstanding and shall continue to be subject
to the terms of the Indenture and remain listed on the Toronto
Stock Exchange.
The Debentures shall be redeemed on a pro rata basis to the
nearest multiple of Cdn$1,000 in
accordance with the principal amount of the Debentures registered
in the name of each holder, or in such other manner as deemed
equitable, subject to any applicable regulatory approvals.
The Record Date for determining the holders of the Debentures to
be redeemed shall be July 8,
2020.
"Energy Fuels is proud to announce that we are paying off half
of our debt on July 14, 2020, and
that we expect to become debt-free by the end of 2020," stated
Mark S. Chalmers, President and CEO
of Energy Fuels. "We are proactively managing our remaining debt to
ensure we have the ability to pay it off on our own timing and
terms and with minimal disruption. We believe it makes sense to
redeem half of the Debentures now because the U.S.-Canada exchange rate is favorable, we have
sufficient cash available, and we will avoid approximately
US$350,000 in interest payments in
2020 by doing so. We will address the remaining Cdn$10,430,000 balance over the next several
months when we think the timing is most appropriate."
"Many junior uranium producers and developers in North America are currently incurring
significant amounts of debt to fund exploration and development
activities and to cover corporate overheads. However, without
sufficient cash flow, servicing this debt can become extremely
burdensome and destructive to shareholder value. Instead, Energy
Fuels has focused on a strategy to reduce our debt load over the
past several years, including paying off our debt to the
State of Wyoming in 2018, all with
minimal impact to our shareholders. Furthermore, we do not expect
to incur more debt in the future without a clear, short-term path
toward positive cash flow. We will continue to manage all aspects
of our business proactively, including maintaining our position as
the leading U.S. uranium producer, advancing our exciting rare
earth initiatives, and maintaining the other significant aspects of
our business plan, including our significant inventories of uranium
and vanadium."
About Energy Fuels: Energy Fuels is the leading
U.S.-based uranium mining company, supplying
U3O8 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
U3O8 per year, and has the ability to produce
vanadium when market conditions warrant. The Nichols Ranch ISR
Project is on standby and has a licensed capacity of 2 million
pounds of U3O8 per year. The Alta Mesa ISR
Project is also on standby and has a licensed capacity of 1.5
million pounds of U3O8 per year. In addition
to the above production facilities, Energy Fuels has one of the
largest NI 43-101 compliant uranium resource portfolios in the U.S.
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." Energy Fuels' website is www.energyfuels.com.
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 are not limited to, statements with respect to:
the Company's planned partial redemption of its outstanding
Debentures; the Company's expectation to become debt-free by
the end of 2020; the Company's expectation to pay its
remaining debt off on the Company's own timing and terms and with
minimal disruption; the Company's expectation not to incur
more debt in the future without a clear, short-term path toward
positive cash flow; and the Company's plans to continue to manage
all aspects of its business proactively, including maintaining our
position as the leading U.S. uranium producer, advancing our rare
earth initiatives, and maintaining the other significant aspects of
the Company's business plan, including our significant inventories
of uranium and vanadium. 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 herein, other than statements of historical
fact, 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 of 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: the Company's planned partial redemption of its
outstanding Debentures; the Company's expectation to become
debt-free by the end of 2020; the Company's expectation to
pay its remaining debt off on the Company's own timing and terms
and with minimal disruption; the Company's expectation not
to incur more debt in the future without a clear, short-term path
toward positive cash flow; the Company's plans to continue to
manage all aspects of its business proactively, including
maintaining our position as the leading U.S. uranium producer,
advancing our rare earth initiatives, and maintaining the other
significant aspects of the Company's business plan, including our
significant inventories of uranium and vanadium; 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 as a result
of changes in management's estimates or opinions, 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.
www.energyfuels.com
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SOURCE Energy Fuels Inc.