United States Energy Corp plans to sell mill in Utah, most uranium assets
Wyoming-based U.S. Energy Corp. and subsidiary Crested Corp., which do business as USECC, said Tuesday they will sell the majority of their uranium assets to Uranium One Inc., based in Toronto, Canada.
Uranium One will pay USECC $750,000 for the exclusive right to buy the uranium assets, including the Shootaring Canyon mill in southeast Utah, for up to 270 days, during which the companies will prepare definitive acquisition agreements.
Under the term sheet, Uranium One will have the right to buy the assets through $49.5 million in Uranium One common stock; $20 million upon the start of the Shootaring mill; a 5 percent cash royalty on the revenues from the sales of any commodity from the mill, up to $12.5 million; and $7.5 million upon first delivery of mineralized material to a commercial mill from any of the purchased properties.
The USECC joint venture includes subsidiaries Sutter Gold Mining Inc., Plateau Resources Limited Inc., U.S. Moly Corp., U.S. Uranium Ltd. and USECC.
