Uranium mining companies Energy Fuels and Strathmore Minerals have signed a definitive arrangement agreement, which takes them a step closer to creating the largest uranium company in the US.

The latest deal has been executed with respect to Letter of Intent signed earlier on 24 May 2013, and comprises customary deal support provisions; customary non-solicitation covenants by Strathmore; and the right for Energy Fuels to match any superior proposal that may arise.

Following the transaction, Energy Fuels will acquire by way of a plan of arrangement in accordance with the Business Corporations Act (British Columbia), all of the issued and outstanding common shares of Strathmore.

The completion of the transaction is subject to satisfaction of certain customary conditions such as approval of Energy Fuels and Strathmore shareholders, and court and regulatory clearances.

Energy Fuels is a US-based conventional uranium producer, supplying approximately 25% of the uranium produced in the country.

Strathmore Minerals is a Canadian resource company specializing in the strategic acquisition, exploration and development of mineral properties in the US.