American Future Fuel Announces Major Partnership to Boost Uranium Mining in Cibola

SEBOYETA, N.M. – Over the past two years, American Future Fuel Corporation has taken significant steps to solidify its position in the uranium market, acquiring and beginning to drill at the Cebolleta uranium site. On May 28, the company announced a partnership that will position it to become a key player in the US quest for increased uranium production.

On May 25, 2022, the company, then known as Evolving Gold Corp., completed the acquisition of Elephant Capital Corp. (ECC) and rebranded as Future Fuel Corporation. The acquisition included ECC's Cebolleta Uranium Project in Cibola County, New Mexico, a strategic asset within the Grants Mineral Belt, which according to the company, is historically responsible for 37 percent of all U.S. uranium production.

This transaction, which involved the issuance of over 56 million shares, marked a pivotal moment for the company, setting the stage for uranium mining to resume in Cibola.

Market Response and Government Support

In July 2022, Future Fuel applauded the Biden Administration's efforts to reduce U.S. reliance on Russian uranium.

The company issued a statement and said this was a move that aligned well with the company's strategic objectives. With the U.S. uranium production significantly declining since 2014, Future Fuel positioned itself to benefit from government initiatives aimed at boosting domestic uranium production.

American Future Fuel wrote in a statement that this was strategic alignment, reinforced by the company's 100 percent interest in the Cebolleta Project, boasting a historical resource estimate of approximately 19 million pounds of uranium.

Strategic Partnerships and Exploration Plans

Throughout 2022, Future Fuel (later rebranded as American Future Fuel Corporation) engaged in several strategic initiatives to advance its projects.

This included the acquisition of the Red Basin Uranium Project in New Mexico and extensive planning for exploration programs at Cebolleta. Red Basin is just south of the Cebolleta site, near Pie Town in Catron County, New Mexico. The company wrote that its aim is to confirm historical resource estimates through drilling programs, signaling its commitment to advancing its uranium assets.

In April 2023, David Suda was appointed as the new CEO, bringing 15 years of capital markets experience to the company. Under his leadership, American Future Fuel received its first drilling permit for the Cebolleta Project in August 2023.

This milestone allowed the company to commence a three-phase confirmation drill program, essential for updating the project's historical resource estimate to current standards.

Progress in Drilling and Market Dynamics

As of September 2023, the company reported encouraging results from its initial confirmation drill holes at Cebolleta.

The company wrote in a statement that results from the initial drill closely matched historical data, reinforcing the project's potential. The ongoing drilling program aims to produce a compliant NI 43-101 resource estimate (A compliant NI 43-101 resource estimate refers to a mineral resource estimate that adheres to the standards set by the Canadian government, this is a regulatory framework designed to ensure transparency and reliability in the public reporting of mineral exploration and mining projects), positioning American Future Fuel to capitalize on the rising uranium demand.

In a major development on May 28, American Future Fuel announced a merger with Premier American Uranium Inc. (PUR) in May 2024.

This merger, approved overwhelmingly by shareholders, aims to consolidate high-quality uranium assets across New Mexico, Wyoming, and Colorado. The merger comes at a crucial time, with the U.S. government passing the Prohibiting Russian Uranium Imports Act, which includes $2.7 billion in funding to boost domestic nuclear fuel production.