Wate project is managed by the Wate Mining, a 50/50 joint venture of VANE Minerals and Uranium One Americas.
Energy Fuels said that future production from the Wate project would be processed at its White Mesa uranium mill in Utah.
The company will manage the operations of Wate Mining, including programs and budgets.
Under the deal, Energy Fuels paid $250,000 cash to VANE, $500,000 non-interest-bearing promissory note in two tranches and a 2% production royalty on interest in Wate Mining.
Energy Fuels can acquire the royalty by paying an additional $750,000 to VANE. If Wate Mining meets certain permitting milestones and other conditions, Energy Fuels will have to pay additional $250,000 cash to VANE.
An application to convert the previous exploration permit into a state mineral lease for the Wate project is submitted and the lease is expected to be granted by the end of this year.
Following the approval, additional state aquifer protection and air quality permits and approvals will be sought to start development and mining.
According to historical estimate from 2011, Wate project is said to contain 1.1 million pounds of U3O8 with an average grade of 0.79%eU3O8 contained in 71,000 tons of inferred mineral resources.
