Uranium Energy Corp. (UEC) has just announced the completion of its acquisition of Rio Tinto's Wyoming assets, including the Sweetwater plant and a portfolio of uranium mining properties. The $175.4 million acquisition was funded with UEC's available liquidity. With this acquisition, UEC now has the largest licensed production capacity in the U.S., with a combined U.S. licensed production capacity of 12.1 million pounds of U3O8 per year.
The recent investments in nuclear power by big tech companies, including Microsoft, Amazon, Google, and Meta, have indicated an increased interest in expanding America's nuclear energy baseload capacity. UEC, being the largest U.S.-based uranium company, is expected to play a critical role in supplying the fuel required for the future.
The acquired asset portfolio includes the Red Desert uranium project, which encompasses approximately 20,005 acres of exploration and mining rights, with historic uranium resources estimated at approximately 42 million pounds of U3O8. Additionally, the Green Mountain uranium project, located 22 miles north of the Sweetwater plant, spans approximately 32,040 acres of exploration and mining rights, with historic uranium resources estimated at approximately 133 million pounds of U3O8.
The Sweetwater plant, a 3,000-ton-per-day processing mill with a licensed capacity of 4.1 million pounds U3O8 annually, is a significant asset with considerable infrastructure in place, including well-maintained buildings and equipment, a wash bay, warehouse, workshop, offices, access road, and utilities. UEC plans to refurbish parts of the plant and complete equipment modifications for in-situ recovery processing.
Goldman Sachs & Co. LLC and Rothschild & Co acted as financial advisors to UEC in connection with the transaction, while Holland & Hart LLP and McMillan LLP acted as its legal advisors.
As a result of this acquisition, UEC is advancing its next generation of low-cost, environmentally friendly in-situ recovery mining uranium projects in the United States, along with high-grade conventional projects in Canada. The company has two production-ready in-situ recovery hub and spoke platforms in South Texas and Wyoming, anchored by fully operational central processing plants and served by seven U.S. ISR uranium projects with all their major permits in place.
With these developments, UEC is poised to make significant strides in its production capabilities and resource growth, positioning itself as a key player in the uranium industry. Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $8.53. For the full picture, make sure to review Uranium Energy's 8-K report.
