Exhibit 99.1
Ur-Energy Releases 2021 Q1 Results
Littleton, Colorado (ACCESSWIRE – May 7, 2021)
Ur-Energy Inc. (NYSE
American:URG) (TSX:URE) (the “Company” or
“Ur-Energy”) has filed the Company’s Form 10-Q
for the quarter ended March 31, 2021, with the U.S. Securities and
Exchange Commission at www.sec.gov/edgar.shtml
and with Canadian securities authorities at www.sedar.com.
Ur-Energy
Chairman and CEO, Jeff Klenda said, “We are pleased with the
regulatory approvals we recently received for our Lost Creek and
Shirley Basin projects. These approvals reinforce our ability to
expand production rapidly and cost-effectively in more than one
location, setting us apart from others in our industry who face
longer timelines and higher costs before realizing full production.
Together, Lost Creek and Shirley Basin will continue to distinguish
Ur-Energy as a leading low-cost uranium producer when we ramp-up.
More so, these regulatory achievements demonstrate the
professionalism and ingenuity of our management and staff, for whom
we are most grateful.
“The
Company is well funded, which allows us to maintain and strengthen
our operational readiness. The next steps toward returning to full
production include the establishment of the new national uranium
reserve program. Congressionally funded for FY2021, the U.S.
Department of Energy is working to implement the reserve program to
purchase domestically sourced uranium to advance our energy and
national security interests. We stand
ready to respond to procurement requests with current and future
Lost Creek and Shirley Basin production
inventory.
“The growing bipartisan support for nuclear energy in the
U.S. creates a strong foundation for our industry. We commend the
Biden Administration for its commitment to addressing climate
change with clean energy initiatives and recognizing that nuclear
must be included as an essential part of the solution. Broad
support for nuclear is evident when comparing the recommendations
of the U.S. Nuclear Fuel Working Group report from April 2020 with
the current priorities of this Administration. The striking
similarity between the two signifies strong support for the
reinvigoration of our industry and the long-term stability of the
nuclear fuel cycle for decades to come.”
Financial Results
As of
March 31, 2021, we had cash resources consisting of cash and cash
equivalents of $17.6 million.
During
the quarter, we closed an underwritten public offering of
14,722,200 common shares and accompanying one-half common share
warrants to purchase up to 7,361,100 common shares, at a combined
public offering price of $0.90 per common share and accompanying
warrant. The warrants have an exercise price of $1.35 per whole
common share and will expire three years from the date of issuance.
We also granted the underwriters a 30-day option to purchase up to
an additional 2,208,330 common shares and warrants to purchase up
to 1,104,165 common shares on the same terms, which was exercised
in full prior to closing. Including the exercised option, we issued
a total of 16,930,530 common shares and 16,930,530 warrants to
purchase up to 8,465,265 common shares. After fees and expenses of
$1.3 million, net proceeds to the Company were approximately
$13.9 million.
Lost Creek Operations
We
continue to control production operations at Lost Creek at reduced
levels. The reduced production levels have allowed us to make
further operating cost reductions at Lost Creek, while continuing
to conduct preventative maintenance and optimize processes in
preparation for ramp up to full production rates. These
preparations include advanced planning for the anticipated drilling
and production well installation in our fully permitted Mine Unit 2
(“MU2”).
During
the quarter, the Wyoming Uranium Recovery Program approved an
amendment to the Lost Creek source material license to include
recovery from our adjacent LC East Project (HJ and KM horizons).
This license approval grants the Company access to six planned mine
units in addition to the already licensed three mine units at Lost
Creek. The approval also increases the license limit for annual
plant production to 2.2 million pounds U3O8, which includes
wellfield production of up to 1.2 million pounds U3O8 and toll
processing up to one million pounds U3O8. The BLM
previously completed its review and granted approval for this
expansion. The Wyoming Department of Environmental Quality, Land
Quality Division, continues its review of the application for
amendment to the permit to mine. We anticipate that the permit to
mine amendment to recover uranium in the LC East Project will be
complete in 2021 H2.
2021 Continuing Guidance
Recognition
of nuclear power’s role in achieving net-zero carbon
emissions goals has resulted in a renewed interest in the uranium
sector. The Paris Climate Agreement calls for net-zero carbon
emissions by 2050 and the U.S. has rejoined the agreement under the
Biden Administration, which is demonstrating support for the
nuclear industry.
Our
current cash position as of May 5, 2021, is 15.8 million. In
addition to our strong cash position, we have nearly 285,000 pounds
of finished, ready-to-sell inventory, worth $8.6 million at recent
spot prices. Our financing in February 2021, from which we received
net proceeds of approximately $13.9 million, provides us with
adequate funds to maintain and enhance operational readiness, for
possible future acquisitions, and for general working capital
purposes, including the preservation of our existing inventory for
higher prices.
In
addition to the restructuring of the State Bond Loan, we
implemented Company-wide cost-saving measures during 2020.
Together, the restructuring and cost-saving measures are estimated
to exceed $7 million and $4 million in calendar years 2021 and
2022, respectively.
In
2021, our technical and operational staff will continue to optimize
processes and refine production plans to strengthen our operational
readiness at the fully permitted Lost Creek mine and plant. After
recent receipt of an approved license amendment, the Lost Creek
facility now has the constructed and licensed capacity to process
up to 2.2 million pounds of U3O8 per year and
sufficient mineral resources to feed the processing plant for many
years to come. We remain prepared to expand uranium production at
Lost Creek to an annualized run rate of up to 1.2 million pounds. A
ramp-up of production at Lost Creek would initially include further
development work in the first two mine units, followed by the ten
additional mining areas as defined in the Lost Creek Property
Preliminary Economic Assessment, as amended.
Our
long-tenured operational and professional staff have significant
levels of experience and adaptability, which will allow for an
easier transition back to full operations. Lost Creek operations
can increase to full production rates in as little as six months
following a go decision, simply by developing additional header
houses within the fully permitted MU2. Development expenses during
this six-month ramp up period are estimated to be approximately $14
million and are almost entirely related to MU2 drilling and header
house construction costs. We are prepared to ramp up and to deliver
our Lost Creek production inventory to the new national uranium
reserve.
Additionally,
with all major permits and authorizations for our Shirley Basin
Project now in hand, we stand ready to construct at the mine site
when market conditions warrant. We estimate up to nine years
production at the project based upon the mineral resources reported
in the Shirley Basin Preliminary Economic Assessment.
We will
continue to closely monitor the uranium market and any actions or
remedies resulting from the U.S. Nuclear Fuel Working Group’s
report, the implementation of the uranium reserve program, or any
further legislative actions, which may positively impact the
uranium production industry. Until such time, we will continue to
minimize costs and maximize the ‘runway’ to maintain
our current operations and the operational readiness needed to
ramp-up production when called upon.
About Ur-Energy
Ur-Energy
is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in
south-central Wyoming. We have produced, packaged, and shipped
approximately 2.6 million pounds from Lost Creek since the
commencement of operations. Ur-Energy now has all major permits and
authorizations to begin construction at Shirley Basin, the
Company’s second in
situ recovery uranium facility in Wyoming and is in the
process of obtaining remaining amendments to Lost Creek
authorizations for expansion of Lost Creek. Ur-Energy is engaged in
uranium mining, recovery and processing activities, including the
acquisition, exploration, development, and operation of uranium
mineral properties in the United States. The primary trading market
for Ur-Energy’s common shares is on the NYSE American under
the symbol “URG.” Ur-Energy’s common shares also
trade on the Toronto Stock Exchange under the symbol
“URE.” Ur-Energy’s corporate office is located in
Littleton, Colorado and its registered office is located in Ottawa,
Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey
Klenda, Chairman & CEO
866-981-4588
Jeff.Klenda@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information
This
release may contain “forward-looking statements” within
the meaning of applicable securities laws regarding events or
conditions that may occur in the future (e.g., our ability to control production
operations at lower levels at Lost Creek in a safe and compliant
manner; ability and timing to receive remaining permits and
authorizations related to our LC East project; the timing to
determine future development and construction priorities for Lost
Creek and Shirley Basin, and the ability to rapidly and
cost-effectively ramp-up production operations when market and
other conditions warrant, and the life of mine and production
results for each project; the ability of the Biden Administration
to advance their climate change and clean energy agenda, its timing
and whether meaningful changes for nuclear power positively affect
the domestic uranium recovery industry and for what period of time;
the timing and program details for establishment of the new
national uranium reserve and continuing budget appropriations for
program; and further implementation of recommendations from the
U.S. Nuclear Fuel Working Group, including the timeline and scope
of proposed remedies and related budget appropriations processes)
and are based on current expectations that, while considered
reasonable by management at this time, inherently involve a number
of significant business, economic, technical and competitive risks,
uncertainties and contingencies. Generally, forward-looking
statements can be identified by the use of forward-looking
terminology such as "plans," "expects," "does not expect," "is
expected," "is likely," "estimates," "intends," "anticipates,"
"does not anticipate," or "believes," or variations of the
foregoing, or statements that certain actions, events or results
"may," "could," "might" or "will be taken," "occur," "be achieved"
or "have the potential to." All statements, other than statements
of historical fact, are considered to be forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements express or implied by the forward-looking statements.
Factors that could cause actual results to differ materially from
any forward-looking statements include, but are not limited to,
capital and other costs varying significantly from estimates;
fluctuations in commodity prices; failure to establish estimated
resources; the grade and recovery of mineral resources which are
mined varying from estimates; production rates, methods and amounts
varying from estimates; delays in obtaining or failures to obtain
required governmental, environmental or other project approvals;
changes in regulatory and legislative requirements; inflation;
changes in exchange rates; delays in development and other factors
described in the public filings made by the Company at www.sedar.com
and www.sec.gov.
Readers should not place undue reliance on forward-looking
statements. The forward-looking statements contained herein are
based on the beliefs, expectations and opinions of management as of
the date hereof and Ur-Energy disclaims any intent or obligation to
update them or revise them to reflect any change in circumstances
or in management’s beliefs, expectations or opinions that
occur in the future.