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Two uranium companies set to merge
May 31, 2013 - By Eric Blom, Staff Writer
Two companies developing uranium mines in Fremont County look set to merge. On May 24, Energy Fuels Inc agreed to purchase Strathmore Minerals ...
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Two companies developing uranium mines in Fremont County look set to merge. On May 24, Energy Fuels Inc agreed to purchase Strathmore Minerals Corp.
According to a letter of intent both companies have signed, Strathmore shareholders are to receive stock in Energy Fuels.
Both organizations think the merger would yield cost savings for their projects.
"I look forward to working with them and their partners to realize the many synergies and to capitalize on the
strengths that are created by this transaction," said Stephen Antony, president and CEO of Energy Fuel.
Toronto-based Strathmore is building a mine in the Gas Hills area, about 45 miles east of Riverton, and operates three more uranium projects in Wyoming and four in New Mexico.
Energy Fuels, of Vancouver, British Columbia, is developing the Sheep Mountain mine eight miles south of Jeffrey City and has other properties in Wyoming, Colorado, Utah and Arizona.
"There's a lot of synergies," said Strathmore's manager of Wyoming operations Jim Crouch.
Working together, the companies can save money, he said.
Partnership in Fremont County would cut costs and reduce time to receive permits, but it also would mean fewer jobs.
Crouch said the two Fremont County mines would be able to share equipment and staff, noting Strathmore has an office in Riverton.
"It would make sense: The people locally could work on both projects and reduce the need for engineering people, environmental people," Crouch said.
Only 28 miles separate the two projects, the press release said. The two companies could save costs by using one plant to process uranium-bearing material from both sites.