News Featured News Uranerz Energy (T.URZ) board under scrutiny...

Uranerz Energy (T.URZ) board under scrutiny after proposed sale to Energy Fuels (T.EFR)

Peter Kennedy, Stockhouse Featured Writer

1 Comment| January 6, 2015

Two New York firms have launched an investigation into the proposed sale of Uranerz Energy Corp. (/www.stockhouse.com/companies/quote/t.urz/uranerz-energy-corporation">TSX: T.URZ, Stock Forum) to Energy Fuels Inc. (TSX: T.EFR, Stock Forum) in a $170 million all-stock transaction that aims to create one of the largest uranium companies in the U.S.

The investigation by securities firm Faruqi & Faruqi LLP and law firm Kirby McInerney LLP concerns whether or not the board of Uranerz violated its fiduciary duties by agreeing to the proposed transaction and whether the deal adequately values the company’s common shares.

Under the agreement, shareholders of Uranerz will receive 0.255 common shares of Energy Fuels for each share of Uranerz stock held, /www.stockhouse.com/news/press-releases/2015/01/05/energy-fuels-and-uranerz-to-create-the-largest-integrated-uranium-producer">the companies said in a press release.

Energy Fuels rose 2.4% to $6.40 on Tuesday while Uranerz ran ahead 3.6% to $1.42.

The deal comes amid improving psychology in the uranium sector after Japan took steps to restart some of its idled reactors.

It combines conventional uranium production from Energy Fuels’ mill at White Mesa, Utah with Uranerz’ mine and plant at Nicholas Ranch, Wyoming, which uses in situ mining technology.

Energy fuels is already the second largest uranium supplier in the U.S. after Cameco Corp. (TSX: T.CCO, Stock Forum), accounting for 20% of U.S. uranium production.

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INDUSTRIAL METALS & MINERALS