Uranium Energy (UEC) (NYSEAMERICAN:UEC) announced the acquisition of Rio Tinto America’s Wyoming assets, including the Sweetwater plant and a portfolio of uranium-focused projects.
UEC said the deal will strengthen its position in the US uranium industry as the country looks to build up domestic supply of the energy fuel following this year’s ban on Russian uranium imports.
The uranium projects hold about 175 million pounds of historic resources, while the Sweetwater plant, which is a conventional processing facility, has a licensed capacity of 4.1 million pounds of U3O8 per year.
The plant, located 40 miles from Rawlins, Wyoming, has been under care and maintenance since 1983. According to UEC, it can be also adapted to recover uranium from loaded resins produced by in-situ recovery (ISR) operations.
In total, the agreement with Rio Tinto will give UEC ownership of more than 53,000 acres of exploration and mining rights, along with geological data from about 13,000 drill holes, plus 26,000 assay records.
UEC, which currently has 12 uranium projects in Wyoming’s Great Divide Basin, said the acquisition will create a third production hub within its existing US portfolio. The Sweetwater plant will play a central role in this hub, unlocking the development potential of nearby uranium resources, particularly those suitable for ISR methods.
The company explained that the transaction builds on its previous expansion efforts, such as its acquisition of Uranium One Americas in 2021, which also focused on the Great Divide Basin.
Amir Adnani, UEC’s CEO, emphasized that the purchase comes at a critical time for the uranium market, as global demand for nuclear energy rises and geopolitical factors reshape supply chains.
“The Russian uranium ban and recent comments by Russian government officials regarding restricting future uranium exports to the west underscore the critical importance of maintaining reliable domestic supply chains to power our growing requirements for clean baseload energy,’ he said in a Monday (September 23) press release.
“With our fourth acquisition since 2021, UEC is continuing to execute towards building the premier and fastest growing North American uranium company,” Adnani added.
The acquisition will be completed through a stock purchase agreement, with UEC acquiring two Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) subsidiaries that hold the Wyoming assets. The US$175 million purchase price will be funded through UEC’s existing liquidity, with closing expected in the fourth quarter of 2024.
Once the deal has gone through, UEC plans to begin upgrading the Sweetwater plant for ISR processing, and will advance exploration efforts at its newly acquired property.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.