Energy Fuels proposes $550 million convertible notes offering

Energy Fuels Inc. (NYSE: UUUU) announced plans to offer $550 million in convertible senior notes due 2031 through a private placement to qualified institutional buyers. The uranium and rare earth elements producer also intends to grant initial purchasers an option to buy up to an additional $82.5 million in notes within 13 days of issuance.

The notes will be general senior unsecured obligations of Energy Fuels and will accrue interest payable semiannually. Holders may convert the notes into cash, common shares, or a combination of both at the company's election under certain conditions. The interest rate and initial conversion rate will be determined at pricing.

Energy Fuels plans to use net proceeds to pay for capped call transactions and provide financial flexibility for development expenditures. Specific funding targets include the Phase 2 rare earth separations circuit expansion at the White Mesa Mill and development of the Donald heavy mineral sands project in Australia. Remaining proceeds will support general corporate needs and working capital requirements.

The company expects to enter into capped call transactions with initial purchasers or affiliates to reduce potential dilution from note conversions. These counterparties may purchase common shares or enter into derivative transactions around the pricing date, which could affect the stock price and trading price of the notes.

The notes and any shares from conversions will not be registered under the Securities Act and may not be offered in the United States without registration or applicable exemptions. No notes will be offered in Canada. The offering requires final acceptance from the Toronto Stock Exchange.

The convertible notes offering remains subject to market conditions, with no assurance regarding completion, timing, or final terms.

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