TORONTO-
Canadian miner SXR Uranium One Inc. said it will buy a uranium processing plant and uranium fields from U.S. Energy Corp. and its Crested Corp. affiliate for stock and cash worth about $101 million.
Uranium One said it will purchase the mothballed Shootaring Canyon Uranium Mill in Utah and uranium exploration properties in Utah, Wyoming, Arizona and Colorado.
It is paying 6.6 million shares, plus $750,000 in cash. The shares traded Friday at 17.78 Canadian dollars on the Toronto Exchange, up from Thursday’s close of 17.68 Canadian dollars ($15.22).
Shares of Riverton, Wyo.-based exploration company U.S. Energy rose 60 cents, or 11 percent, to $6.20 in midday trading Friday on the Nasdaq Stock Market.
Uranium One has also agreed to pay U.S. Energy $20 million when the mill starts commercial production and $7.5 million on the first delivery of uranium to the mill material from any of the purchased properties.
U.S. Energy will also receive a royalty of 5 percent on the sale of uranium produced at the mill, to a maximum of $12.5 million.
The Shootaring Canyon Mill is about 48 miles south of Hanksville, Utah. The mill was commissioned and operated for four months in 1982 and has been maintained in “excellent condition” since then.
Toronto-based Uranium One launched a $3.2 billion takeover bid earlier this month for Vancouver-based UrAsia Energy Ltd., which would create the world’s second-largest uranium producer behind Cameco Corp.
