Uranium Energy Acquires Rio Tinto’s Wyoming Assets for $175M to Boost U.S. Uranium Production

Uranium Energy has reached an agreement to acquire Rio Tinto’s uranium assets in Wyoming, including the fully-licensed Sweetwater uranium processing plant and several mining projects. The $175 million cash transaction, expected to close in the fourth quarter of 2024, will enhance Uranium Energy’s production capabilities, adding around 175 million pounds of historic uranium resources to its portfolio.

The acquisition is a strategic move to establish Uranium Energy’s third hub-and-spoke production platform, further cementing the company as a leading uranium developer in Wyoming and the broader U.S. market. The Sweetwater plant, a 3,000-tonne-per-day facility, has a licensed capacity of 4.1 million pounds of triuranium octoxide (U3O8) per year.

In addition to the Sweetwater plant, Uranium Energy will also acquire the Red Desert uranium project, covering 20,000 acres, and the Green Mountain project located 35 kilometers north of Sweetwater.

Uranium Energy CEO Amir Adnani highlighted that these assets will "unlock tremendous value" and create synergies with other projects in the Great Divide Basin. The acquisition comes at a time of heightened demand for uranium, driven by geopolitical events and the growing need for clean energy solutions.

Following the announcement, shares in Uranium Energy rose 2.7% in pre-market trading, bringing the company’s market capitalization to $2.26 billion.