Canadian uranium developer IsoEnergy (TSXV: ISO) is buying Anfield Energy (TSXV: AEC) in an all-stock deal valued at C$126.8 million to acquire its Shootaring Canyon conventional mill in Utah, one of only three in the United States.
The agreement values Anfield shares at C$0.103 apiece, a 32% premium to Anfield’s closing price on Monday, IsoEnergy said in a release. The purchase gives IsoEnergy 84% and Anfield 16% of the company.
IsoEnergy also gains several conventional uranium and vanadium projects in Utah, Colorado, Nex Mexico and Arizona. Shootaring is rare in the US for being a licensed, permitted and built conventional uranium mill. It will help the company “substantially” expand output potential as it advances the past-producing and permitted Tony M and Daneros projects near Shootaring in Utah. The company aims to become one of the country’s largest uranium producers as nuclear power gains traction to fight climate change.
“Today’s acquisition of Anfield strengthens both our resource base and near-term production potential,” CEO Philip Williams said. “The combined uranium mineral endowment will rank as one of the largest in the U.S., supported by a 100% owned processing facility, multiple fully permitted mines ready for rapid restart, and a strong pipeline of longer-term development projects.”
Shares in IsoEnergy fell nearly 6% on Tuesday morning in Toronto to C$3.14 apiece, valuing the company at C$566.7million. They’ve traded in a 52-week range of C$2.37 to C$4.40. Anfield stock rose nearly 30% to C$0.09 for a market capitalization of C$91.7 million. Their range has been C$0.055 to C$0.11.
The company has applied to increase Shootaring’s throughput to 1,000 tonnes a day from 750 tonnes per day, allowing IsoEnergy to triple output capacity to 3 million lb. U₃O₈ (uranium oxide or yellowcake) from 1 million lb. U₃O₈. IsoEnergy has toll-milling agreements with Energy Fuels’ (TSX: EFR; NYSE: UUUU) White Mesa mill in Utah for additional processing flexibility.
The acquisition more than doubles IsoEnergy’s uranium resources for a total of 17 million measured and indicated lb. and 10.6 million inferred lb. to rank it among the largest in the US, the company said. The consolidation of assets in Utah and Colorado offer cost savings in transportation and administration, it said.
The deal comes exactly a year after IsoEnergy took over Consolidated Uranium in an all-stock deal including Tony M and Daneros, among others. Tony M is 6 km from Shootaring. IsoEnergy also holds Hurricane, the world’s highest grade indicated uranium resource, in northern Saskatchewan’s Athabasca Basin. It has other projects in Quebec, Nunvaut and Australia.
IsoEnergy plans to use the Shootaring mill to process ore from Anfield’s Velvet-Wood and Slick Rock projects. The two projects together have 811 million measured and indicated tonnes grading 0.29% U₃O₈ for 4.6 million lb. yellowcake, according to an April 2023 resource.
The Anfield acquisition gives IsoEnergy larger scale for access to capital and even more M&A, CEO Williams said.
“IsoEnergy is committed to becoming a globally significant, multi-asset uranium producer in the world’s top uranium mining jurisdictions,” he said. “With the global shift towards nuclear power, we believe the outlook for uranium has never been stronger.
