Filed by Energy Fuels Inc.
(Commission File No.: 001-36204)
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Uranerz Energy Corporation
(Commission File No.: 001-32974)
Energy Fuels Issues Annual Letter to
Shareholders
Lakewood, Colorado March 30, 2015
Energy Fuels Inc. (NYSE MKT:UUUU; TSX:EFR) (Energy Fuels
or the Company), one of the leading uranium producers in the United
States, is pleased to present its Annual Letter to Shareholders from President
and CEO, Stephen P. Antony:
Dear Fellow Shareholder:
I write to you today on behalf of myself and the Board of
Directors of Energy Fuels. I first wish to thank you for your continued support
of Energy Fuels vision of becoming the leading uranium producer in the U.S.
Since our inception in 2006, our vision has been to become Americas Uranium
Miner to grow into the largest, most reliable, most competitive and
ultimately most profitable supplier of uranium in the U.S. And, I am excited
to say that we are on our way to achieving this vision. In 2014, we successfully
executed our business plan, strengthened our balance sheet, increased our gross
profitability, and exceeded the annual production and operations guidance from
our previous annual financial statements.
Despite general weakness in the energy sector, the recent
strength of uranium might be the best kept secret in energy and commodities
markets. Indeed, we may be in the early stages of a recovery. Though we continue
to manage our business conservatively, we are increasingly optimistic about
uranium markets. This belief is demonstrated by our growth through M&A and
by maintaining and increasing our ability to scale-up production as prices
continue to increase.
Energy Fuels began 2015 by announcing we had entered into an
agreement to acquire Americas newest uranium producer, Uranerz Energy
Corporation (Uranerz). We believe this will be yet another transformational
acquisition for Energy Fuels, as we continue to emerge as the leading uranium
mining company focused on the U.S.
At a time when uncertainty in the energy market remains
widespread, it is our belief that rising global demand for emission-free and
carbon-free sources of energy including nuclear energy will continue to
stand-out within the energy sector. This is why the Board and I remain committed
to building long-term value in the U.S. uranium space through prudent existing
production, maintaining and growing our production scalability, and continuing
to consolidate the U.S. uranium space.
Energy Fuels is a major producer of uranium in the U.S. For the
past 5 years, our White Mesa Mill has supplied an average of 1 million pounds of
uranium to World nuclear markets every year. We are producing from one mine in
Arizona, and preparing to resume development at another. Uranerz is currently
ramping up uranium production at their Nichols Ranch Processing Facility in
Wyoming, and their existing long-term sales contracts should fit well within
Energy Fuels existing portfolio of contracts. And, I should point out that both
Energy Fuels and Uranerz contracts boast premium-pricing that is significantly
above todays spot price.
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We believe having the ability to significantly scale-up
production from a growing, diverse mining portfolio in a rising price
environment will allow Energy Fuels to more swiftly capitalize on further upside
in uranium prices. We anticipate these rising prices will be fueled by a growing
imbalance in global uranium supply and demand, highlighted by the 70 reactors
under construction around the World, along with the hundreds more planned,
proposed, or on order.
The global appeal for nuclear power continues to spread with
advances in technological innovation and growing concerns regarding global
climate change. Leaders around the World continue to publicly express the need
to improve air quality and lower carbon footprints. This bodes well for
producing uranium miners like Energy Fuels.
The U.S. is the largest producer of nuclear power on the
planet, and should remain so for many years to come. China is the largest
consumer of energy on the planet and is pursuing an aggressive nuclear program
with 27 reactors under construction and new units being approved. Indeed,
Chinas nuclear energy program may be much larger than many people think. In
addition, the door is open for Japan to finally restart a large portion of their
nuclear capacity.
Growing geopolitical uncertainty in Eastern Europe and Africa
is further highlighting the critical need for stable, reliable uranium sources.
Energy Fuels has the capability to provide this uranium supply, because we
operate in the U.S., a geopolitically friendly environment. Indeed, a whole host
of factors point to increasing future uranium prices, and we believe Energy
Fuels is well-positioned to benefit.
We are enthusiastic about the closing of the Uranerz
transaction, and we look forward to sharing updates of our progress in the
months ahead. 2015 is already shaping up to be an exciting time in the history
of Energy Fuels. We are also committed to remaining a responsible,
growth-oriented and entrepreneurial uranium mining company, as we believe this
will ultimately create value for our shareholders.
We value your belief in our vision, and thank you for your
continued support of Energy Fuels. If you have any questions or concerns, please
feel free to contact our offices via phone at (888) 864-2125 or via email at
investorinfo@energyfuels.com.
Respectfully,
Stephen P. Antony
President and CEO of Energy Fuels Inc.
About Energy Fuels: Energy Fuels is currently
Americas largest conventional uranium producer. Energy Fuels operates the White
Mesa Mill, which is the only conventional uranium mill currently operating in
the U.S. The mill is capable of processing 2,000 tons per day of uranium
ore and has a licensed capacity of over 8 million lbs. of
U3O8. Energy Fuels has projects located in a
number of Western U.S. states, including a producing mine, mines on standby, and
mineral properties in various stages of permitting and development. Energy
Fuels common shares are listed on the NYSE MKT under the trading symbol UUUU,
and on the Toronto Stock Exchange under the trading symbol EFR. For more
information, please visit Energy Fuels website, www.energyfuels.com.
Important Information for Investors and Stockholders of
Uranerz Energy Corp. and Energy Fuels Inc.: On January 5, 2015, the
Company announced a transaction whereby it would acquire all of the issued and
outstanding shares of Uranerz Energy Corp. (Uranerz). This press release is
for informational purposes only and does not constitute an offer to purchase, a
solicitation of an offer to sell the shares of common stock of Uranerz or a
solicitation of any proxy, vote or approval. Energy Fuels will file with the
United States Securities and Exchange Commission (SEC) a registration
statement on Form F-4 that will include a proxy statement of Uranerz that also
constitutes a prospectus of Energy Fuels. Energy Fuels and Uranerz also plan to
file with or furnish other documents to securities regulatory authorities in Canada and the United States
regarding the proposed acquisition of Uranerz by Energy Fuels.
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INVESTORS AND STOCKHOLDERS OF URANERZ ARE URGED TO READ THE
PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION OF URANERZ BY
ENERGY FUELS.
Anyone may obtain copies of these documents when available
free of charge under Energy Fuels profile on SEDAR at www.sedar.com or EDGAR at
www.sec.gov, or by accessing Energy Fuels website at
www.energyfuels.com under the heading Investors and from Energy Fuels directly
by contacting Curtis Moore, Investor Relations: (303) 974-2140. Documents will
also be available free of charge under Uranerz profile on EDGAR at www.sec.gov
or on SEDAR at www.sedar.com, or by accessing Uranerz
website at www.uranerz.com under the heading Investors and from Uranerz
directly by contacting Derek Iwanaka, Investor Relations: (800) 689-1659. Energy
Fuels, Uranerz, their respective directors and certain of their executive
officers may be deemed to be participants in the solicitation of proxies from
the shareholders of Uranerz in connection with the proposed acquisition of
Uranerz by Energy Fuels. Information about the directors and executive officers
of Uranerz is set forth in its annual report on Form 10-K for the year-ended
December 31, 2014, which was filed with the SEC on March 16, 2015. Information
about the directors and executive officers of Energy Fuels can be found in its
annual information form dated March 18, 2015, which is available at
www.sedar.com and www.sec.gov. Other
information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, will be contained in the proxy statement/prospectus and other
relevant materials to be filed with the SEC when they become available.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains certain Forward Looking Information and
Forward Looking Statements within the meaning of applicable Canadian and
United States securities legislation, which may include, but are not limited to,
statements with respect to the future financial or operating performance of
Energy Fuels and its projects, the acquisition of Uranerz, and Energy Fuels
future uranium price expectation and market outlook. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as anticipates, does not anticipate, believes, or
variations of such words and phrases, or state that certain actions, events or
results may, might or will be taken. All statements, other than statements
of historical fact, herein 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
Energy Fuels to be materially different from any future results, performance or
achievements express or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date of this
press release, and Energy Fuels assumes no obligation to update the information
in this communication, except as otherwise required by law. Readers are
cautioned not to place undue reliance on these forward-looking statements.
Investor Relations Inquiries:
Curtis Moore, VP - Marketing & Corporate
Development
(303) 974-2140 or (888) 864-2125
investorinfo@energyfuels.com
www.energyfuels.com
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