Energy Fuels Inc. (NYSE: UUUU; TSX: EFR), a Lakewood-based producer of uranium and rare earth elements, announced plans to raise $550 million through a private offering of convertible senior notes due in 2031.
The offering, subject to market conditions, targets qualified institutional buyers under Rule 144A of the U.S. Securities Act. An additional $82.5 million in notes may be issued if initial purchasers exercise an option to expand the offering within 13 days of issuance.
The notes will be unsecured senior obligations of the company and will accrue interest payable semiannually. They may be converted into cash, Energy Fuels common shares, or a combination of both, depending on the company’s election. Final terms, including interest rate and conversion rate, will be set at pricing.
Energy Fuels intends to use the proceeds to fund several strategic initiatives, including Phase 2 of its rare earth separation circuit expansion at the White Mesa Mill in Utah and development of its Donald heavy mineral sands project in Australia. Proceeds will also support general corporate activities and working capital needs.
As part of the transaction, the company expects to enter into capped call agreements designed to reduce potential dilution from note conversion and manage related financial exposure. These transactions may involve counterparties purchasing or selling Energy Fuels shares, potentially impacting the stock price.
The notes and any associated shares will not be registered under U.S. or Canadian securities laws and will not be offered to the general public. The deal remains subject to final approval from the Toronto Stock Exchange.
Energy Fuels continues to position itself as a key supplier of critical minerals, aiming to expand processing capabilities at a time when demand for non-Chinese sources of rare earth elements is growing.