Energy Fuels raises $700mn through convertible notes to support project expansion

Energy Fuels has completed a $700mn fundraising through 0.75% convertible notes, aimed at supporting its rare earth and uranium projects.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Energy Fuels Inc. has closed a senior convertible notes issuance totalling $700mn, including the full exercise of the $100mn over-allotment option by initial purchasers. The offering, initially planned at a lower amount, was upsized in response to strong investor demand.

Optimised financial terms to attract the market

The notes, maturing in 2031, carry an annual interest rate of 0.75%, payable semi-annually. The initial conversion price is set at $20.34 per share, representing a 32.5% premium over the last reported share price on September 30. In parallel, Energy Fuels purchased “capped call” options for $53.55mn, raising the effective conversion price to $30.70, equal to a 100% premium.

This structure limits dilution upon conversion while allowing the company to settle the notes in shares, cash, or a combination of both. Energy Fuels also retains the right to redeem the notes under specific conditions.

Financial backing for rare earth and uranium development

The capital raised will support Energy Fuels’ rare earth development initiatives, notably the expansion of its White Mesa Mill in the United States and the Donald Project in Australia. The company also aims to strengthen its position in uranium, citing low-cost domestic production.

Energy Fuels Chief Executive Officer Mark Chalmers stated the transaction reflects “a vote of confidence” from investors in the company’s strategy. He highlighted the attractive annual coupon and the strengthened balance sheet enabling faster project execution.

Major financial institutions lead the offering

Goldman Sachs & Co. LLC served as sole book-running manager for the issuance. Cantor acted as lead manager and capped call coordinator, with Morgan Stanley also serving as a lead manager. BMO Capital Markets and Canaccord Genuity participated as co-managers.

Energy Fuels’ ability to secure this level of financing amid a cautious financial environment underlines rising market interest in strategic materials. The offering was sufficiently oversubscribed to justify a $67.5mn upsizing over the initial tranche.

First Lithium Minerals begins a field programme at its Lidstone project, aiming to identify gold or base metal drilling targets in a historically underexplored greenstone belt.
CMSI launches a public consultation until 17 November to finalise a common mining standard designed to simplify industrial requirements and strengthen global adoption.
The Canadian government supports a pilot phosphorus purification project in Quebec with public funding aimed at strengthening the national strategic minerals supply chain.
Kinshasa replaces export ban with a quota system covering just half of its output, triggering a price surge and global supply tensions.
TETRA Technologies announces a sharp increase in mineral resources in Arkansas, including bromine, lithium, and for the first time magnesium and manganese, across its 40,000 acres of brine concessions.
US-based EnergyX will install its lithium pilot plant in Texarkana, investing $20mn on the TexAmericas Center industrial site and announcing the creation of over 40 skilled jobs.
TexPower entrusts its strategy to reindustrialise lithium iron phosphate in the United States to Bader Almonawer, appointed president to lead the company’s industrial and operational development from Houston.
The Barroso project, considered strategic for the European Union, faces a new delay due to administrative setbacks involving a pending land easement approval.
Piedmont Lithium has completed its merger with Sayona Mining, giving birth to Elevra Lithium, a new mining group focused on hard-rock lithium with an expanded presence in North America and Australia.
Canada and Germany have signed a joint declaration of intent to secure their supply chains for strategic minerals such as lithium, nickel and rare earths.
Comet Lithium unveils promising assay results from its Elmer East project, revealing a pegmatite rich in lithium, cesium, and tantalum, with rare grades for a first phase of exploration on virgin ground.
Aleon Metals has secured $188 million in financing from its creditors and initiated a restructuring process to support its operations and pursue the sale of its strategic assets.
The sultanate awards three mining concessions to local companies. Projects target strategic deposits to reduce hydrocarbon dependence.
The suspension of Jianxiawo mine after its mining permit expired removes 65,000 tonnes of annual production from the saturated global market.
Vision Lithium identifies several high-grade lithium, cesium and tantalum dykes on its Sirmac property, confirming the presence of a mineralised trend over more than five kilometres near Chibougamau.
Chevron acquires 125,000 acres in a lithium-rich formation in the United States, aiming at local production via advanced technology to strengthen the national supply of critical minerals.
Vortex Metals has confirmed copper, silver and gold grades at the Illapel project in Chile, while identifying six new conductive targets with high IOCG mineralisation potential.
Comet Lithium begins a 17-day exploration programme on June 13 at its Triple L and Elmer East sites, focusing on geophysical and satellite-detected anomalies.
With 27 ongoing projects across seven states, Brazil seeks international funding to develop its rare earth reserves and reduce reliance on China.
The European Union selects 13 critical materials extraction projects, including a site in Greenland, to secure strategic supplies essential for technological and energy industries, amidst global geopolitical risks.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.