I've been active on the EFR message board touting the benefits of the EFR / STM deal. I think that EFR is getting STM on the cheap. However BY NO MEANS does this suggest that STM shareholders are getting a bad deal.
ALL natural resource companies are trading quite cheap, including Energy Fuels, Inc.! I ask STM shareholders that are upset about the proposed price paid by EFR, what was the alternative for STM? A dilutive equity raise before year-end? STM has been around for years, other companies could have made a run at STM, but they didn't. Don't forget STM holders, you recently had a going-concern disclosure in your filings.
EFR pulled the trigger because of the opportunity to exploit very substantial synergies. These synergies will be made more clear in coming days and weeks as analysts, newsletter writers and others explain and critique this deal. So far, there's been a very positive response.
BOTH STM and EFR are better off together, 2 + 2 = 5. KEPCO and Sumitomo will be a lot more confident working with the largest U.S. uranium company. Strathmore's projects will be doubly de-risked. Funding risk will be greatly diminished because a new Mill won't be required to be built for Roca Honda. And, project execution risk will be greatly reduced as the time to build a new Mill, the management resources and the associated permitting hurdles are avoided.
KEPCO is the largest shareholder of both EFR and STM. Between KEPCO and Sumitomo, EFR's 30 million lb Sheep Mountain project is looking a lot better and Roca Honda and Gas Hills have been greatly de-risked.
Finally, STM may or may not have been able to get WY Industrial Revenue Bonds for their WY projects. The combined company should be able to get those bonds. Based on the IRB bonds that appear to be going through for Uranerz and UR-Energy, I think that a lot of WY State monies could be coming our (EFR + STM) way.
Welcome aboard STM shareholders. Don't fret, enjoy the ride. We're all in this together now.