Uranium Energy (UEC), a NYSE American-listed uranium explorer and producer, has agreed to acquire uranium assets in Wyoming, US, from Rio Tinto for $175m (£131m).

Under the agreement, Rio Tinto will divest its Wyoming assets including the wholly owned and fully licensed Sweetwater Plant and uranium mining projects with resources estimated at 175mlb of U3O8.

This agreement will see UEC purchasing 100% of the shares of two Rio Tinto subsidiaries holding these assets.

Upon completion, UEC will replace around $25m in surety bonds for future reclamation costs.

The acquisition includes the Red Desert and Green Mountain uranium projects, which hold significant historic uranium resources and potential for in-situ recovery (ISR) mining.

UEC will use its existing liquidity to fund the deal, which is due to complete in the fourth quarter of 2024.

Spanning more than 20,000 acres, the Red Desert Project holds an estimated 42mlb of U3O8 in historic resources.

The Green Mountain Project, around 32,040 acres in size, contains roughly 133mlb of U3O8 across five deposits, with areas suitable for ISR and conventional mining.

The Sweetwater Plant is a 3,000-tonnes-per-day mill with a licensed capacity of 4.1mlb of U3O8.

Said to be the only conventional processing mill in Wyoming, the plant has been under care and maintenance since 1983, with considerable infrastructure in place.

There is potential to adapt the plant for uranium recovery from loaded resins produced by ISR operations, subject to permit and licence modifications, UEC said.

UEC president and CEO Amir Adnani said: “Expanding our production capabilities with the acquisition of highly sought after and fully licensed uranium assets in the US is an important and timely milestone, especially in Wyoming, where we have recently restarted ISR production.

“With this transaction, we are building upon our transformative acquisition of Uranium One Americas in 2021, which added a large portfolio of holdings in the Great Divide Basin of Wyoming.

“These assets will unlock tremendous value by establishing our third hub-and-spoke production platform and cement UEC as the leading uranium developer in Wyoming and the US.”

"Uranium Energy to acquire Wyoming uranium assets from Rio Tinto" was originally created and published by Mining Technology, a GlobalData owned brand.

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