Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) entered into a Strategic Relationship Agreement with Korea Electric Power Corporation, the largest electric utility in South Korea. Under the Agreement, Energy Fuels and KEPCO have agreed to evaluate a joint development strategy with respect to Energy Fuels’ Sheep Mountain, Gas Hills and/or Juniper Ridge Projects in Wyoming.
As quoted in the press release:
Within the SRA, Energy Fuels and KEPCO have agreed to cooperate in the evaluation of a joint development strategy with respect to Energy Fuels’ Sheep Mountain, Gas Hills and/or Juniper Ridge Projects in Wyoming (the “Wyoming Projects”). As previously announced, Energy Fuels is currently evaluating the co-development of its Wyoming Projects and is targeting the development of a 2nd major uranium production center for the Company in the State of Wyoming. Taken together, these three projects contain approximately 19.3 million tons of Measured and Indicated Mineral Resources with average grades that range from 0.06% to 0.13% U3O8 containing 40.9 million lbs. of U3O8. Included in these resource estimates, the Sheep Mountain Project has approximately 7.4 million tons of Probable Mineral Reserves with an average grade of 0.123% U3O8, containing 18.4 million lbs. of U3O8. In March 2012, Energy Fuels completed a Prefeasibility Study (“PFS”) for the Sheep Mountain Project only. Under the base case scenario, the project demonstrated attractive project economics based on a U3O8 price of US$65 per lb., including 1.5 million lbs. of annual U3O8 production, US$32.31 per lb. operating costs, 42% internal rate of return, and US$201 million net present value. The Company believes the project economics for the Sheep Mountain Project may be enhanced by co-developing it with the Gas Hills and/or Juniper Ridge Projects. The PFS for the Sheep Mountain Project is filed under Energy Fuels’ SEDAR profile. As previously announced, KEPCO was a party to a strategic venture arrangement with Strathmore Minerals Corp. (“Strathmore”) in connection with the development of the Gas Hills Project in Wyoming. On August 30, 2013, Energy Fuels acquired all of the issued and outstanding shares of Strathmore by way of a plan of arrangement.