Uranium One, a publicly traded uranium producer, has signed a definitive agreement to acquire 100% of the MALCO Joint Venture (MALCO) from wholly-owned subsidiaries of AREVA and EDF for $35m in cash.
The assets of MALCO include the licensed and permitted Irigaray ISR central processing plant, the Christensen Ranch satellite ISR facility and associated U(3)O(8) resources located in the Powder River Basin of Wyoming.
The Irigaray and Christensen Ranch facilities would form basis for the company’s new operating plan in Wyoming. The company expects that its Moore Ranch project would become a satellite ISR operation, with loaded resins being transported to Irigaray for further processing into dried U(3)O(8). The company’s additional projects in the Powder River Basin, including Ludeman, Peterson, Allemand-Ross and Barge could also be developed as satellite operations with final processing through Irigaray.
Jean Nortier, president and chief executive officer of Uranium One said: “The acquisition of the Irigaray and Christensen Ranch ISR facilities is an excellent complement to our current Wyoming uranium resource portfolio. By acquiring existing, licensed production facilities, we will reduce the permitting and construction risk associated with developing our own central production plant. Now, with a clear path to commencing uranium production in the U.S., we believe that the underlying value of our Wyoming asset base will become apparent.”
The transaction is expected to be closed by first half of 2010 and is subject to regulatory approvals including US Nuclear Regulatory Commission (“NRC”), Wyoming Department of Environmental Quality (“WDEQ”), Texas Commission on Environmental Quality and the Committee on Foreign Investment in the United States.
The closing is also subject to a financing condition which the company expects would be satisfied by the completion of the previously announced private placement of 117,000,000 common shares of Uranium One to a consortium of Japanese companies for proceeds of approximately C$270m.
Previously, including uranium recovered from restoration activities, a total of 4.7m pounds U(3)O(8) was produced at Christensen Ranch and Irigaray. All major permits and licenses, including the NRC Source Material License, the WDEQ Permit to Mine, and permits for disposal well operations are in place for the re-start of operations at Christensen Ranch and Irigaray. Operations may be carried on while the NRC approval is pending.
Upon closing of the transaction, the company plans to develop and mine the resources at Christensen Ranch and Irigaray commencing with the continued development of well fields at Christensen Ranch. Once operational, uranium laden resins from the Christensen Ranch satellite facility would be transported for final processing at the Irigaray central processing plant. The Irigaray central processing plant has the capacity to produce approximately 1.3 million pounds of dried U(3)O(8) per year.