Property, Plant and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4. PROPERTY, PLANT AND EQUIPMENT

	September 30, 2015		December 31, 2014
	Net book value		Net book value
	(in thousands)
Uranium plant	$	8,841	$	8,921
Mineral rights and properties		24,186		22,063
Vehicles		206		264
Other property, plant and equipment		1,389		1,482
Total	$	34,622	$	32,730

Purchase and Exchange Agreement with Energy Fuels

On June 26, 2015, the Company and certain of its subsidiaries entered into a Purchase and Exchange Agreement (the “PEA”) with Energy Fuels, Inc. and a subsidiary of Energy Fuels, Inc. (collectively, “Energy Fuels”), pursuant to which at closing on July 31, 2015 subsidiaries of the Company transferred ownership of the Company’s Roca Honda project, including mineral fee lands and unpatented lode mining claims in Sections 8 and 17 of Township 13 North, Range 8 West, covering approximately 1,240 acres and 3,382 acres of leased claims to Energy Fuels. In exchange, Energy Fuels delivered to the Company or its subsidiaries (i) $2,500,000 in cash, (ii) 76,455 shares of Energy Fuels common stock with a fair value upon closing of $292,823, such shares being subject to a four-month hold period from the date of closing, (iii) Energy Fuels’ 4% gross royalty covering 5,640 acres on seven mineral leases in the state of Wyoming at the Kendrick and Barber areas of the Lance uranium in-situ recovery project, which is currently under construction by Peninsula Energy Limited, and (iv) unpatented lode mining claims covering 640 acres in Section 4 of Township 16 North, Range 18 West, located near Churchrock, New Mexico, which are contiguous with the Company’s Churchrock project, as well as claims in Section 34 and leases from the state of New Mexico in Sections 32 and 36, all situated in Township 17 North, Range 16 West.

The Company also retained a 4% royalty on Section 17 of the Roca Honda project. The royalty can be repurchased by Energy Fuels upon payment to the Company of $5,000,000 cash at any time at Energy Fuel’s sole discretion prior to the date on which the first royalty payment becomes due.

The divestiture of the Roca Honda project was accounted for as an asset disposal and the non-cash considerations received from Energy Fuels was recorded at fair value. The fair value of the shares of Energy Fuels common stock received was determined using the closing share price of Energy Fuels stock on July 31, 2015. The fair value of the unpatented lode mining claims and mineral leases was determined based upon the per pound value of similar transactions involving unproved uranium assets within the last three years. The Company determined that the Lance Royalty had de minimus value and therefore determined the fair value to be nil. The following fair value amounts were recorded with the full amount attributable as a gain within the Company’s Statement of Operations as the Roca Honda project had previously been fully written down:

(in thousands)	Fair Value
Cash	$	2,500
Energy Fuels Inc. common stock		293
Churchrock properties		2,123
Lance Royalty		-
Total	$	4,916

The fair value of the shares of Energy Fuel’s common stock received were valued using Level 1 inputs of the fair-value hierarchy and the fair value of the unpatented lode mining claims and mineral leases were valued using Level 3 inputs of the fair-value hierarchy (as defined in Note 8 below).