Titan Uranium (TSXV:TUE) and Energy Fuels (TSX:EFR) announced that they have entered into a Letter of Intent to pursue a transaction whereby EFR will acquire by way of a plan of arrangement all of the outstanding common shares of Titan.
As quoted in the press release:
Upon completion of the Transaction, existing Titan shareholders will own approximately 42% of the issued and outstanding common shares of EFR, which will then own 100% of Titan.
Energy Fuels and Titan believe that the Transaction will provide a number of significant benefits to the shareholders of both companies, including the following:
- Increased scale and market presence in the uranium sector
- Substantial NI 43-101 compliant resource (37 million pounds U3O8 Measured + Indicated, 4.3 million pounds U3O8 Inferred – see details below)
- Enhanced near-term production profile
- Focus on US production with low political risk
- Creation of a strong platform for continued uranium consolidation within the US
- Greater financial strength
- Combined management experience and expertise