August 23, 2011
Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“) announced today that the Radiation Program of the Colorado Department of Public Health and Environment (CDPHE) has approved a request by the Company to defer its remaining financial assurance payments for the Piñon Ridge Uranium and Vanadium Mill until next construction season. This approval is an amendment to the company’s Radioactive Materials License (the “License”). The original payment schedule was based on mill construction starting in September 2011. However, due to ongoing litigation on the License, Energy Fuels will not be able to start construction until at least March 2012.
Steve Antony, President and CEO of Energy Fuels commented, “The deferral of this substantial commitment of capital is very good news for Energy Fuels in light of the expected and ongoing legal processes that are in the hands of the court system. Until we clear the administrative and legal roadblocks currently prohibiting us from beginning construction, there is no reason to tie up these funds in the state treasury. We can put this money to far better use in our consolidation program in the western US.”
The amended License reflects a department-approved financial warranty for decommissioning of the mill in the amount of US$11,070,890, payable on the following schedule:
- US$1,373,900, which was paid on May 6, 2011;
- US$2,898,260 due March 7, 2012 or prior to the start of construction, whichever comes first;
- US$6,401,920 due Sept. 7, 2012 or six months after construction begins, whichever comes first; and
- US$396,810 due March 7, 2013 or one year after construction begins, whichever comes first.
These amounts are based on detailed cost estimates analyzing a worst-case scenario that assumes a third party must implement the preapproved decommissioning and reclamation plan at no cost to taxpayers. These cost estimates are required to be reviewed annually to ensure sufficient money is in place to protect taxpayers.
In addition to the amounts detailed above, Energy Fuels has previously deposited US$844,400 into the Colorado state treasury to pay for the long-term care of the mill site after decommissioning.
Steve Tarlton, Radiation Program Manager for CDPHE stated that, “It’s important to note that the financial warranty is for decommissioning the mill after operation at the end of its useful life. Because construction has not even begun, delaying these payments poses no liability to the state or the people of Colorado.”
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About Energy Fuels: Energy Fuels Inc. is a uranium and vanadium mineral development company actively rehabilitating and developing formerly producing mines. With more than 38,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah, Arizona, Wyoming, and New Mexico, and exploration properties in Saskatchewan’s Athabasca Basin totaling approximately 32,000 additional acres, the Company has a full pipeline of additional development prospects. Energy Fuels, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation and its British Columbia subsidiary, Magnum Uranium Corp., has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Naturita, Colorado and Kanab, Utah.
This news release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and “Forward Looking Information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time-to-time with the British Columbia, Alberta and Ontario Securities Commissions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Energy Fuels Inc.
Toll free: 1-888-864-2125
Toll free: 1-888-864-2125