Energy Fuels Inc (NYSEAMERICAN:UUUU) revealed Thursday that it has struck a deal with GeoInstruments Logging LLC to buy all of its prompt fission neutron (PFN) technology and equipment, including related intellectual property.
The deal will give Energy Fuels, which is the largest producer of uranium in the US, the exclusive right to use and license PFN technology globally. Energy Fuels says PFN is “critical” to successful uranium production particularly from “many in situ recovery deposits.”
Energy Fuels will pay GeoInstruments Logging $500,000 in cash for the technology, with the deal expected to close within two weeks after completion of a due diligence inspection of the equipment.
The company said it will gain four PFN tools, nine gamma tools, two heavy-duty logging trucks with logging and associated equipment, power supplies, computers, and other technology. It also stands to acquire important intellectual property for the “tools, circuit board diagrams, firmware code, software, manuals, instructions, patents” and the sole right to utilize and license PFN technology globally.
In a statement, Energy Fuels CEO Mark S Chalmers said the move will “further solidify” Energy Fuels’ position as “the leading uranium miner” in the United States.
“We believe that acquiring PFN technology is now more important than ever, as we believe a revival of the US uranium industry is imminent,” Chalmers added.
He also noted: “On April 23, the US Nuclear Fuel Working Group (NFWG) conclusively described why the US needs healthy uranium and nuclear fuel industries in order to secure US energy and national security and prevent Russia, China and other geopolitical rivals from gaining control of global — and US — nuclear markets.”
According to Chalmers, the NFWG report represents the “strongest” US government commitment to supporting US uranium miners in decades.
“The NFWG report also provides a menu of actions the US government can take to support domestic uranium mining, including creating a US uranium reserve, and potentially increasing the size of the American assured fuel supply,” he added.
In response to the NFWG report, President Trump has announced a budget that seeks $150 million per year over the next 10 years (totalling $1.5 billion over that time frame) to establish a strategic uranium reserve.
“We believe PFN technology is critical, as the technology provides significant advantages to miners that operate primarily ISR uranium projects, many of which are in a state of radioactive disequilibrium. PFN is able to more accurately detect and define uranium content and location versus traditional downhole gamma measurements,” noted Chalmers.
The Energy Fuels boss said that without PFN, a uranium miner may miss large areas of high-grade uranium resources within a deposit. He added: “As a result, PFN can provide a uranium miner with the opportunity to gain a significant advantage by reducing “uranium production, drilling, exploration, analytical costs and time.”
In addition to uranium, Energy Fuels is getting in on the rare earth elements (REEs) market with its White Mesa Mill, the only conventional uranium mill operating in the US today.
Contact the author Uttara Choudhury at [email protected]
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Published at Thu, 07 May 2020 13:20:00 +0000-Energy Fuels says to buy prompt fission neutron (PFN) technology from GeoInstruments Logging