|
|
|
Toronto, Ontario - August 03, 2017 - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the "Company") is pleased to provide an update on activities since its Annual and Special Meeting ("ASM") held on June 22, 2017, that includes:
- The closing of the Existing Shareholder Prospectus Exemption ("ESPE") financing announced on June 27, 2017;
- Next steps in the stock consolidation that was approved by shareholders at the Company's recent ASM;
- Update on metallurgical test work that has been concluded in Australia; and
- A note on the recent surge in vanadium prices.
Closing of the ESPE Financing
The Company raised $119,353 in a financing that was available only to existing shareholders - a financing that was designed to give smaller shareholders an opportunity to increase their shareholding in the Company in a cost-effective way prior to the share consolidation that was approved at the ASM. U3O8 Corp.. is one of the first resource companies to use the ESPE financing model with a subscription form that could be completed online. Minor issues were encountered and successfully resolved in offering this format which included an option of electronic payment through PayPal. The ESPE financing closed on August 2, 2017.
Richard Spencer, President and CEO of U3O8 Corp. commented, "I would like to thank the subscribers to this financing for their patience and help with ironing out the wrinkles of the process, and for making the first subscription payments to a U3O8 Corp. financing by credit card. We are well on our way to streamlining and simplifying the subscription process. Future financings by the Company are likely to be private placements, which are open only to accredited investors, combined with ESPE, to ensure that all shareholders of U3O8 Corp. have an equal opportunity to subscribe, irrespective of the size of their shareholding."
Consolidation of Shares
The consolidation of U3O8 Corp.'s common shares, as approved by shareholders at the ASM, will be undertaken shortly. A futher announcement will be made, and a letter of transmittal will be mailed to shareholders and posted on the Company's profile on www.sedar.com, which will provide all related details and instructions.
For shareholders with less than 1,000 U3O8 Corp. shares, the result of the consolidation is that their share position will be cancelled and a cash payment made based on the trading price of the shares on the date of approval at the ASM (June 22, 2017). The consolidation provides a simple and cost-effective means of reducing the number of small common share lots that cost the Company a disproportionate amount in administration expenses.
For shareholders holding more than 1,000 shares, the consolidation will be followed by a share split resulting in an overall consolidation of each twenty previously issued and outstanding common shares to one new share. The information circular posted on the Company's profile on www.sedar.com provides further background to the consolidation.
Metallurgical Test Work
Test work that was undertaken in Australia failed to achieve the results anticipated due to the extremely fine-grained nature of the uranium-vanadium minerals in the Laguna Salada gravel. Ironically, it is this fine particle size that leads to the rapid leaching of uranium and vanadium that is favourable for the economics of the Project. It turns out that these fine minerals may also be amenable to flotation as a means of concentrating the metals beyond the levels attained by the methods described in the preliminary economic assessment ("PEA") of the Deposit. The objective of the test work will be to determine whether flotation may result in lower cash costs of production for the Deposit.
Surge in Vanadium Prices
The vanadium market moved into deficit last year as a result of increased demand for vanadium-steel used mainly in the construction industry, and greater demand for vanadium in lithium-ion and vanadium redox flow batteries ("VRB"). The vanadium price responded with a gain of 100% from its 10-year low reached in early-2016. Its price surged a further 50% last week on an announcement that China intends to ban the importation of iron slag which had been a secondary source of vanadium.
The selection of a VRB for the construction of the world's largest battery is drawing attention to its energy storage capacity at a truly industrial scale. The choice of the VRB for the Dalian site in China was based on the battery's reliability, life in excess of 20 years, and the fact that the electrolyte is fully recyclable at the end of the battery's life. The 200 megawatt / 800 megawatt-hour battery has sufficient capacity to provide the electricity required by 100,000 typical western homes for eight hours.
Technical Information
Dr. Richard Spencer, P.Geo., CGeol., President and CEO of U3O8 Corp. and a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada Deposit and the related PEA.
U3O8 Corp. is focused on exploration and development of deposits of uranium and associated commodities in South America. Potential by-products from uranium production include commodities used in the energy storage industry - in the manufacture of batteries - such as nickel, vanadium and phosphate. The Company's mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in three deposits:
- Laguna Salada Deposit, Argentina - a PEA shows this near surface, free-digging uranium - vanadium deposit has low production-cost potential;
- Berlin Deposit, Colombia - a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit; and
- Kurupung Deposit, Guyana - a uranium resource has been estimated in four veins within a uranium-zirconium vein system. Resources have been estimated on four veins, while consistent mineralization of the same type has been intersected in scout drilling of an additional six veins, while yet other veins require first-time exploration drilling.
Forward-Looking Statements
This news release includes certain "forward looking statements" related with the development plans, economic potential and growth targets of U3O8 Corp's projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana, (d) impact of the U- pgradeTM process on expected capital and operating expenditures, and (e) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) a joint venture will be formed with the provincial petroleum and mining company on the Argentina project, (iii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iv) economic, political and industry market conditions will be favourable, and (v) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company's ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the "Risk Factors" in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled "Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina" and the January 18, 2013 technical report titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.."
For information, please contact:
Richard Spencer, President and CEO
|
|
| |
|
|
|
| |