Vancouver-based Titan Uranium Inc. (TSX-V:TUE) and Toronto-based Energy Fuels Inc. (TSX:EFR) today announced merger plans.
Under the deal, outlined in a letter of intent, Energy Fuels will acquire all outstanding common shares of Titan and, upon completion, Titan shareholders will own approximately 42% of the Energy Fuels issued and outstanding common shares.
According to the companies, the advantages of the deal include:
- increased scale and market presence in the uranium sector;
- greater financial strength; and
- the creation of a strong platform for continued uranium consolidation within the U.S.
In a company statement, Titan president and CEO Chris Healey said: “We at Titan are excited at the potential to be part of a growing future producer, moving toward our stated goal of being part of a mid-tier uranium producer, with assets recoverable by conventional mining techniques and located in the U.S.”
The deal is subject to various conditions. At press time, Titan stock was up nearly 14% to $0.17 and Energy Fuels stock was up more than 5% to $0.30. Calls to Titan were not returned by press deadline.
Jenny Wagler
@JennyWagler_BIV