Energy Fuels, a Canadian uranium miner, has inked two support agreements with Korea Electric Power Corporation (KEPCO) to facilitate Energy Fuels' proposed acquisition of Strathmore Minerals.
KEPCO is the largest shareholder of both Energy Fuels and Strathmore with 8.5% and 11.7% in respective companies.
With these agreements, KEPCO has agreed to vote their shares of both companies in favor of the acquisition, as well as each director and senior officer of both Energy Fuels and Strathmore will be in favor of the transaction.
Earlier in June 2013, Energy Fuels has entered into a definitive agreement to acquire all the stakes of Strathmore by way of a plan of arrangement and the agreement is currently subject to approval from shareholders of Energy Fuels and Strathmore, scheduled on 13 August 2013 and 20 August 2013, respectively.
Energy Fuels president and CEO Stephen Antony said that the company is delighted with KEPCO’s support for acquisition of Strathmore.
"KEPCO is recognized as a world-leader in nuclear power development. We look forward to expanding our relationship with this high-quality organization," added Antony.
KEPCO, meanwhile, has also secured an option to form a joint venture with Strathmore for the Gas Hills uranium project in central Wyoming, US.
Following the completion of acquisition, KEPCO will hold approximately 9.1% of the common shares of Energy Fuels.