Uranium Energy Corp To Acquire Rio Tinto’s Wyoming Uranium Assets For $175 Million
Uranium Energy Corp (NYSE: UEC) has acquired additional uranium assets. The company has entered into an arrangement with Rio Tinto, whereby they are to acquire the firms uranium assets in Wyoming.
The acquisition will see UEC purchase Rio Tinto’s Sweetwater Plant, along with a portfolio of uranium mining projects that are said to have 175 million pounds of historic resources. The purchase, in combination with twelve existing assets held in the state, is expected to establish UEC’s third hun and spoke production platform in the US, which is centered on the Great Divide Basin of Wyoming.
The Sweetwater Plant contains a licensed capacity of 4.1 million pounds per year, process material at a rate of 3,000 tonnes per day. The processing facility is also said to be adaptable for the recovery of uranium from loaded resins produced by ISR operations, providing flexibility for both ISR and conventional mining.
The land package meanwhile covers 53,000 acres of land to UEC’s portfolio, which historically has had over 6.1 million feet (1.86 million metres) of drilling conducted on it across 13,000 drill holes. Combined with previously owned assets in the region, UEC now owns 108,000 acres of land in the Great Divide Basin.
The assets are to be acquired for a figure of $175 million, subject to working capital adjustments, which is to be funded via available liquidity. As part of the purchase, UEC will be required to replace $25 million in surety bonds related to future reclamation costs on the assets. The transaction is expected to close in Q4 2024.
“With this Transaction, we are building upon our transformative acquisition of Uranium One Americas in 2021, which added a large portfolio of holdings in the Great Divide Basin of Wyoming. We recognized early on that there are meaningful development synergies with the Rio Tinto assets, particularly the Sweetwater Plant. These assets will unlock tremendous value by establishing our third hub-and-spoke production platform and cement UEC as the leading uranium developer in Wyoming and the U.S.,” commented Amir Adnani, CEO of Uranium Energy Corp.
Uranium Energy Corp last traded at $5.54 on the NYSE.
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