Both the companies have signed a letter of intent under which Energy Fuels buy properties adjacent to Roca Honda, totaling about 4,580 acres.
Situated in the Grants Mineral District of northwest New Mexico, the Roca Honda project is anticipated to have a nine-year mine life with average production of about 2.6 million pounds of U3O8 per year.
The properties to be acquired include significant historical uranium resources with additional exploration potential, as well as mine development infrastructure, including a partially-sunk mine shaft built by Kerr-McGee in 1982 to a depth of 1,478 feet.
Energy Fuels said the infrastructure could result in lower capital requirements and reduced operating costs.
Energy Fuels president and CEO Stephen Antony said: "Roca Honda is truly a flagship U.S. uranium project. It is already one of the largest and highest-grade uranium projects in the U.S.
"Our transaction with URI will significantly increase the size of our Roca Honda project and has the potential to make the project economics even more attractive through increased uranium resources, additional exploration, and the potential use of the existing historic mine shaft."
Energy Fuels operates the White Mesa Mill, which is capable of processing 2,000 tons per day of uranium ore. It has a licensed capacity of more than 8 million lbs of U3O8.
