“We are buying it for pennies on the dollar,” Glasier said. “They have $13 million invested in that mill plus the value of the other properties. Uranium prices are low and if you buy assets that are not very popular you are going to get a bargain. The downside of that is what if the price of uranium never comes back?”
The assets included in the transaction include the Piñon Ridge Uranium Mill license and its related assets as well as a handful other mining assets including the Sunday Complex in San Miguel County, the Willhunt project, the San Rafael project, the Sage mine, the Van 4 mine, the Farmer Girl project, the Dunn project and the Yellow Cat project.
The total cost of the deal is $2.05 million and once completed, the properties/assets will transfer from a publically traded company to a private corporation.
“I think bringing it back into local control is important,” Glasier, a West End resident said on Thursday.
“Energy Fuels is a Canadian company with an office in Denver. They had no presence over here. I think it’s important for it to be back in local control and I am excited about it.”
According to Glasier, he originally started the Colorado-based Energy Fuels Resource Corporation and sold it to Energy Fuels Inc., a Toronto, Canada-listed company in 2006.
In essence, Glasier and the private investor group Baobab Asset Management, are now buying that subsidiary back.
“I am buying back the original asset company which has the mill license and its properties,” he said. “The other mine assets I am buying from other subsidiaries of Energy Fuels. That includes the Sunday Mine in San Miguel County.”
As for the Baobab Asset Management, which is named after an African tree and founded by Russell Fryer, Glasier said it’s an investment firm he knows “fairly well” and has interests in various resource companies around they world.
“They are long-term investors in projects and they saw the value of investing in this project,” Glasier said.
With uranium prices remaining low, the investment in the Piñon Ridge Uranium Mill, may, for now, be just that: a long-term investment.
