U.S. ENERGY CORP. ANNOUNCES ACQUISITION OF PLATEAU RESOURCES LTD.
RIVERTON, Wy., Aug. 11 /PRNewswire/ -- U.S. Energy Corp. (NASDAQ-NMS: USEG) announced today that it has acquired from Consumers Power Co. of Jackson, Mich., all of the outstanding shares of Plateau Resources Ltd., a Utah corporation, which is the owner and operator of the Shootaring Canyon Uranium Milling Facility located in southeastern Utah (approximately) 13 miles north of the Bullfrog Basin Marina on Lake Powell). The mill was designed to process 750 tons per day of uranium ore and was operated on a trial basis for two months during the summer of 1982. Plateau suspended operations in 1984 because of the depressed market for uranium concentrates. Plateau's subsidiary, Canyon Homesteads Inc., in a joint venture, developed the Ticaboo townsite near the mill to house Plateau's mine and mill workers. The townsite has paved streets, sidewalks and a school with facilities for kindergarten through the 12th grade. Canyon Homesteads owns a 66-room motel together with 98 single family homesites, 151 mobile home sites, 26 recreational vehicle sites, a restaurant, bar and grocery store. John L. Larsen, president of U.S. Energy Corp. and now president of Plateau Resources Ltd., said, "Plateau will initiate a study to resume operations of the Shootaring Canyon Mill in anticipation of higher uranium prices which we believe will occur within the next three years. The Shootaring Mill is a modern facility that Consumers Power has maintained in excellent condition. There were once more than 40 uranium mills operating in the United States and upon completion of the acquisition of Plateau Resources, U.S. Energy and its joint venture partners will own two of the four remaining mills in the U.S. We believe this will provide us with a significant competitive advantage when uranium prices recover in response to declining uranium inventories." Larsen concluded, "The motel and certain other facilities at Ticaboo would be re-opened and operated as commercial enterprises." U.S. Energy Corp. is a diversified minerals exploration and development company with primary interests in major uranium resources in south-central Wyoming. The company and its subsidiary, Crested Corp., also share a 90 percent interest in a gold prospect in California, hold royalty and other interests in a world-class molybdenum deposit in Colorado and in other base and precious metals properties. -0- 8/11/93 /CONTACT: John L. Larsen, president, or Keith G. Larsen of U.S. Energy Corp., 307-856-9271/ (USEG)
CO: U.S. Energy Corp.; Consumers Power Co. ST: Wyoming; Utah IN: MNG SU: TNM
JB-EH -- LA011 -- 1684 08/11/93 12:24 EDT
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|Date:||Aug 11, 1993|
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