NYSE MKT Symbol – UEC
CORPUS CHRISTI, TX,
July 10, 2017 /CNW/ - Uranium Energy
Corp (NYSE MKT: UEC, the "Company" or "UEC") is pleased to announce
that the Company has exercised its previously disclosed option (the
"Option") to acquire all of the issued and outstanding shares of
CIC Resources (Paraguay) Inc.
("CIC"), a wholly-owned subsidiary of CIC Resources Inc. (the
"Vendor"), in accordance with the terms and conditions of the
Company's share purchase and option agreement (the "Share Purchase
and Option Agreement") with the Vendor, dated March 4, 2016, as amended. As a result, UEC
now controls 100% of the Alto Paraná Titanium Project (the
"Property") located in the departments of Alto Paraná and Canindeyú
in the Republic of Paraguay.
Amir Adnani, President & CEO,
stated: "Over the last 5 years we have invested in assembling a
team of technical and local experts in Paraguay to advance our ISR uranium
portfolio. The acquisition of the Alto Parana project in no
way reflects a change in the strategic direction of UEC, rather an
opportunity to acquire a large, advanced asset within a familiar
jurisdiction. Leveraging our in-country presence and
know-how, we identified a timely and strategic opportunity to
consolidate over 70,000 hectares making up the Alto Parana titanium
project and its pilot plant for the benefit of UEC
shareholders. Approximately $25
million has been invested in this project to date by CIC
Resources and its former JV partner, Tronox. The UEC team and
advisors have spent a considerable amount of time reviewing these
assets, and in the coming months we will update the market on our
go-forward plans to unlock value at Alto Paraná."
In accordance with the terms of the Share Purchase and Option
Agreement, the Company has issued to the Vendor 664,879 restricted
common shares of the Company (each, a "Share"), at a deemed
issuance price of $1.5363 per Share,
for aggregate consideration of $1,021,453 (the "Consideration"). The
Consideration represents (i) the Company's Option exercise payment
of $275,000 and (ii) the
reimbursement by the Company to the Vendor of all Property
maintenance costs incurred since execution of the Share Purchase
and Option Agreement. In addition to the Consideration, the
Company has also granted the Vendor a 1.5% net smelter returns
royalty (the "Royalty") on the Property. The Company has the right,
exercisable at any time for a period of six years following
exercise of the Option, to acquire one-half percent (0.5%) of the
Royalty at a purchase price of $500,000.
The Company previously acquired all of the issued and
outstanding shares of JDL Resources Inc. ("JDR"), also a
wholly-owned subsidiary of the Vendor, pursuant to the terms of the
Share Purchase and Option Agreement, in June 2016. The
Company acquired JDR in exchange for a cash payment of $50,000 and the issuance of 1,333,360 Shares to
the Vendor. JDR holds additional titanium mineral property
concessions that lie adjacent to and contiguous with the
Property.
The Alto Paraná Titanium Project is an advanced exploration
stage project located in eastern Paraguay, within the department of Alto
Paraná, approximately 100 km north of Ciudad del Este. The
Property covers an area of 70,498 ha of land under five mining
permits granted by the Ministry of Public Works and Communications,
Paraguay. The project is near Itaipu, the second largest
hydro-electric dam in the world and a source of cost-effective
power. Work to date on the Property has included an extensive
program of pitting and auger drilling, development of a small test
mine, construction of a pilot plant to evaluate the proposed
beneficiation flow sheet, bench scale smelting tests, production of
approximately 110 tonnes of concentrate for a large scale smelting
tests and associated engineering, marketing, logistical and
environmental work.
UEC will now be working on preparing a proposed NI 43-101
Technical Report for the Property which will be released before the
end of 2017 and is continuing to evaluate options to further unlock
the potential value of these acquisitions.
Titanium can be alloyed with iron, aluminum, vanadium and
molybdenum, among other elements, to produce strong, lightweight
alloys for aerospace applications (jet engines, missiles, and
spacecrafts). Of all the mined and synthetic titanium
minerals, only 5% is used to produce titanium metal. The
remaining 95% is used to manufacture pure titanium dioxides – a
pigment that enhances brightness and opacity in paints and inks,
paper, and plastics, and even in food products and cosmetics.
It is also the metal used in the body of Apple's MacBook line –
helping achieve a lightweight frame. The rally in pigment
markets has had a significant impact on feedstocks, resulting in
increasing demand, declining inventories and increasing prices, led
by spot prices in China. From the commercial perspective,
ilmenite is the most important ore of titanium, since ilmenite is
the main source of titanium dioxide. At the time, UEC
executed its Share Purchase and Option Agreement, spot ilmenite
prices bottomed at US$60/t towards
the end of 2015/early 2016. According to Bloomberg, ilmenite
bulk concentrate is now priced at approximately US$178/t.
About Uranium Energy Corp.
Uranium Energy Corp. is a U.S.-based uranium mining and
exploration company. The Company's fully-licensed Hobson
Processing Facility is central to all of its projects in
South Texas, including the
Palangana ISR mine, the permitted Goliad ISR project and the
development-stage Burke Hollow ISR project. Additionally, the
Company controls a pipeline of advanced-stage projects in
Arizona, Colorado and Paraguay. The Company's operations are
managed by professionals with a recognized profile for excellence
in their industry, a profile based on many decades of hands-on
experience in the key facets of uranium exploration, development
and mining.
Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol:
U6Z
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release constitutes
"forward-looking statements" as such term is used in applicable
United States and Canadian laws.
These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans, "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and should be
viewed as "forward-looking statements". Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the actual results of exploration
activities, variations in the underlying assumptions associated
with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares,
accidents, labor disputes and other risks of the mining industry
including, without limitation, those associated with the
environment, delays in obtaining governmental approvals, permits or
financing or in the completion of development or construction
activities, title disputes or claims limitations on insurance
coverage. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news
release.
Certain matters discussed in this news release and oral
statements made from time to time by representatives of the Company
may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Federal
securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be achieved. Forward-looking information is
subject to certain risks, trends and uncertainties that could cause
actual results to differ materially from those projected. Many of
these factors are beyond the Company's ability to control or
predict. Important factors that may cause actual results to differ
materially and that could impact the Company and the statements
contained in this news release can be found in the Company's
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
SOURCE Uranium Energy Corp