Anfield Energy Signs Agreement With Cotter to Significantly Expand Its Uranium and Vanadium Portfolio
TSX VENTURE: AEC
VANCOUVER, British Columbia, Jan. 08, 2019 (GLOBE NEWSWIRE) -- Anfield Energy Inc. (TSX-V: AEC, OTCQB: ANLDF, FRANKFURT: 0AD) (“Anfield” or the “Company”) is pleased to announce, further to its news release on March 12, 2018, that it has signed an Asset Purchase Agreement (APA) with Cotter Corporation (N.S.L.) (“Cotter”), an arm’s-length party, to acquire both: the Charlie ISR Uranium Project (the “Charlie Project”) located in the Pumpkin Buttes Uranium District in Johnson County, Wyoming; and nine past-producing uranium/vanadium properties in the Montrose and San Miguel Counties of Colorado, collectively known as the West Slope Project (“West Slope Project”).
Anfield’s CEO, Corey Dias, commented: “We are excited to acquire these projects which significantly expand our uranium and vanadium portfolios. The Charlie Project represents an important step forward in creating an ISR uranium mine-and-mill complex in Wyoming as we seek to leverage our resin processing agreement with Uranium One. Further, the West Slope Project provides Anfield with the potential to extend the mill life of our conventional Shootaring Canyon Mill, thereby strengthening our uranium/vanadium mine-and-mill complex. Importantly, Anfield will also have access to the data from the previous exploration activities at both the Charlie Project and the West Slope Project, allowing for rapid preparation of technical reports on both projects. Consequently, as uranium and vanadium markets trend upwards, we are now even better-positioned for production at the appropriate time.”
The transaction will be settled with the issuance of common shares of Anfield to Cotter equal to a 19.9% ownership interest in Anfield and, should either project proceed to production, Cotter will retain a 20% interest in all yellowcake production from the Charlie Project and a 15% interest in all yellowcake and vanadium production from the West Slope Project. Based on the current outstanding share capital of Anfield, the transaction is expected to result in the issuance of 11,051,775 common shares to Cotter. In accordance with the policies of the TSX Venture Exchange, the deemed value of the transaction will be determined based upon the maximum allowable discount (25%) from the market price of the Company’s common shares following the issuance of this news release.
The Charlie Project
Inexco Oil began exploration drilling on the Charlie Project in 1969 and over a two-year period completed 215 holes, comprising 91,000 ft. of drilling. A joint venture was formed with Uranerz USA in 1974 and an additional 715 holes were completed, including 57 core holes, totaling 283,906 ft. Cotter acquired the project from Uranerz and proceeded to evaluate it for both conventional open pit and in situ mining methods. Cotter excavated a 200 ft. test pit in 1981 on a small ore zone east of the main trend. Falling uranium prices in the 1980s halted further development on the project.
On September 5, 2018, Anfield announced that BRS Engineering had completed a uranium resource estimate – commissioned by Anfield – for the Charlie Project (Charlie Uranium Project, Mineral Resource NI 43-101 Technical Report, Johnson County, Wyoming, USA, October 5, 2018). The resource estimate includes:
- an Indicated Mineral Resource of 1,260,000 tons of mineralized material with an average grade of 0.123% eU3O8 (equivalent to an Indicated Resource of 3,100,000 pounds of eU3O8); and
- an Inferred Mineral Resource of 558,000 tons of mineralized material with an average grade of 0.125% eU3O8 (equivalent to an Inferred Resource of 1,400,000 pounds of eU3O8); and
- in addition to the disclosed Mineral Resource, an Exploration Target ranging from 280,000 to 680,000 tons with an average grade ranging from 0.090 to 0.151 %eU3O8 (equivalent to an Exploration Target ranging from 500,000 to 1,300,000 pounds of eU3O8).
The West Slope Project
The West Slope Project, located in Montrose and San Miguel Counties of southwestern Colorado, consist of nine Department of Energy (DOE) leases, associated with adjacent lode mining claims and leases, covering 6,913 acres on which past uranium production has taken place. Between 1977 and 2006, approximately 1.3Mlbs of uranium and 6.6Mlbs of vanadium were produced from these mines. In 2007, Behre Dolbear was commissioned by Cotter to produce a Technical Report for the West Slope Project (Technical Report on Nine Properties Held by Cotter Corporation in Montrose and San Miguel Counties, Colorado, USA, August 16, 2007). Using available data and using a cut-off of 0.05% uranium, Behre Dolbear estimated an in-place Measured Resource of 2.1Mt of uranium at an average grade of 0.25% for a total of 11Mlbs of uranium and an in-place Measured resource of 1.2Mt of vanadium at an average grade of 1.2% for a total of 53Mlbs of vanadium.
Historical Resources - West Slope
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Anfield considers these estimates to be historical in nature and cautions that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Anfield is not treating the historical estimate as a current mineral resource or mineral reserves.
The transaction will close following TSX Venture Exchange approval. All securities issued in connection with the transaction will be subject to a four-month-and-one-day statutory hold period prescribed by applicable securities laws. No finders’ fees are payable in connection with the completion of the transaction.
Anfield is a uranium and vanadium development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its assets. Anfield is a publicly-traded corporation listed on the TSX-Venture Exchange (AEC-V), the OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfield is focused on two project centres, as summarized below:
Wyoming – Irigaray ISR Processing Plant (Resin Processing Agreement)
Anfield has also signed a Resin Processing Agreement with Uranium One whereby Anfield would process up to 500,000 pounds per annum of its mined material at Uranium One’s Irigaray processing plant in Wyoming. In addition, the Company can both buy and borrow uranium from Uranium One in order to fulfill some or all of its sales contracts.
Anfield’s 24 ISR mining projects are located in the Black Hills, Powder River Basin, Great Divide Basin, Laramie Basin, Shirley Basin and Wind River Basin areas in Wyoming. Anfield’s two projects in Wyoming for which NI 43-101 resource reports have been completed are Red Rim and Clarkson Hill.
Arizona/Utah – Shootaring Canyon Mill
A key asset in Anfield’s portfolio is the Shootaring Canyon Mill in Garfield County, Utah. The Shootaring Canyon Mill is strategically located within one of the historically most prolific uranium production areas in the United States, and is one of only three licensed uranium mills in the United States.
Anfield’s conventional uranium assets consist of mining claims and state leases in southeastern Utah and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield’s conventional uranium assets include the Velvet-Wood Project, the Frank M Uranium Project, as well as the Findlay Tank breccia pipe. An NI 43-101 Preliminary Economic Assessment (PEA) has been completed for the Velvet-Wood Project. The PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment would be realized. All conventional uranium assets are situated within a 125-mile radius of the Shootaring Mill.
About Cotter Corporation
Cotter Corporation is a General Atomics (GA) affiliate headquartered in Denver, Colorado. Originally incorporated in 1956 in New Mexico as a uranium production company, Cotter was purchased by and became a wholly owned subsidiary of Commonwealth Edison in 1975. GA acquired Cotter in early 2000. Through its various mining and milling operations, Cotter has produced uranium, vanadium, molybdenum, silver, lead, zinc, copper, selenium, nickel, cobalt, tungsten and limestone.
Douglas L. Beahm, P.E., P.G. has approved the scientific and technical disclosure, relating to the Charlie Project, in the news release. He is a Qualified Person as defined in NI 43-101.
On behalf of the Board of Directors
ANFIELD ENERGY, INC.
Corey Dias, Chief Executive Officer
Anfield Energy, Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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