Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) announced in a news release it entered an agreement to acquire from GeoInstruments Logging all of its prompt fission neutron (PFN) bore hole logging technology, equipment and related intellectual property for $500,000. The transaction is expected to close within two weeks.
Under the agreement, Energy Fuels will have the exclusive right to use, license and service the technology worldwide. With this PFN technology, the Colorado-based uranium company will be able to ramp up production at its in situ recovery (ISR) properties faster and more efficiently when market conditions improve. Also, it will be able to repair, service and maintain Energy Fuels and others' existing PFN equipment and license the technology.
"Energy Fuels' acquisition of this PFN equipment and technology will further solidify Energy Fuels' position as the leading uranium miner in the United States, especially in the ISR space. We believe that acquiring PFN technology is now more important than ever, as we believe a revival of the U.S. uranium industry is imminent," Energy Fuels President and CEO Mark S. Chalmers said in the release.
The assets being acquired are four PFN tools, nine gamma tools with point resistivity, spontaneous potential and deviation; two logging trucks with logging and associated equipment; power supplies, computers, communication and other technology; and intellectual property. The latter includes all corporate details of the tools, circuit board diagrams, firmware code, software, manuals, instructions and patents.
The company noted that PFN is critical to successful uranium production, particularly ISR, as it more accurately detects, defines the location and measures the grade of uranium ore than the traditional gamma and spectral gamma methods. Also, it reduces the costs and time associated with uranium drilling, exploration, analysis and production.
CEO Chalmers also stated, "On April 23, 2020, the U.S. Nuclear Fuel Working Group (NFWG) conclusively described why the U.S. needs healthy uranium and nuclear fuel industries in order to secure U.S. energy and national security and prevent Russia, China and other geopolitical rivals from gaining control of global – and U.S. – nuclear markets. We believe the NFWG report represents the strongest U.S. government commitment to supporting U.S. uranium miners in decades. The NFWG report also provides a menu of actions the U.S. government can take to support domestic uranium mining, including creating a U.S. uranium reserve, and potentially increasing the size of the American Assured Fuel Supply. We believe the NFWG report is an emphatic call for the U.S. government to take whatever actions are necessary to bring back U.S. uranium and nuclear fuel production. In response to the NFWG Report recommendations, President Trump has already announced a budget that seeks $150 million per year over the next 10 years (totaling $1.5 billion over that timeframe) to establish a strategic uranium reserve intended "to provide additional assurances of availability of uranium in the event of a market disruption."
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