NYSE American Symbol –
UEC
CORPUS
CHRISTI, Texas, June 8, 2022
/PRNewswire/ - Uranium Energy Corp (NYSE: UEC) (the "Company"
or "UEC") is pleased to report that it has closed a series of
transactions with Anfield Energy Inc. ("Anfield") pursuant to which
Anfield has settled $18.34 million of indebtedness (the "Anfield
Indebtedness") owing to UEC. The Company received the Anfield
Indebtedness through its $112 million
acquisition of Uranium One Americas, Inc. ("U1 Americas") in
December 2021.
Subsequent to the closing of the Anfield Indebtedness, and the
pending return of certain surety amounts related to the U1 Americas
transaction, UEC will have over $182
million of cash and liquid assets, and no debt.
Amir Adnani, President and CEO,
stated: "We are pleased to have completed mutually beneficial
agreements where the Anfield Indebtedness has now been repaid to
UEC with significant cash proceeds and a strategic equity stake in
Anfield. The transactions also include a property swap
allowing us to consolidate 25 additional uranium properties into
our Wyoming portfolio including
the Charlie project which will be incorporated into our future
mining operations at the Christensen Ranch project. As a
result, UEC will control the largest ISR uranium portfolio in
the United States. We look forward
to Anfield's progress as it
emerges from these transactions debt-free and positioned as a
leading conventional uranium-vanadium developer in the Uravan
Mineral Belt."
Mr. Adnani continued: "This week's announcement by the Biden
Administration potentially marks the beginning of a new chapter in
the future of the domestic U.S. nuclear fuel industry. In
light of Russia's ongoing invasion
of Ukraine, the Biden
Administration is proposing a plan whereby the Department of Energy
is asking Congress for approval and appropriations to purchase
$3.5 billion of domestic low-enriched
uranium which is comprised of uranium, conversion and enrichment
services from U.S. suppliers. We look forward to working with
the Department of Energy to advance U.S. national and energy
security interests in domestic uranium capabilities as the U.S.
transitions away from Russian supply."
Details of Anfield Debt Settlement
The Anfield Indebtedness to UEC was settled through the payment
of $9.17 million in cash plus the
issuance to UEC of 96,272,918 units of Anfield (each, an "Anfield Unit"), which were
issued at a deemed price of $0.095
per Anfield Unit for an aggregate value of approximately
$9.17 million. Each Anfield Unit is
comprised of one common share of Anfield (each, an "Anfield Share") plus one
Anfield share purchase warrant
(each, an "Anfield Warrant"), with each Anfield Warrant entitling
UEC to acquire one Anfield Share at a price of C$0.18 per Anfield Share until May 12, 2027. The securities underlying the
Anfield Units are subject to certain resale restrictions. As
a result, UEC now owns approximately 16% of Anfield on an outstanding basis (including
warrants, approximately 27% on a partially diluted basis).
Additionally, UEC completed a property swap agreement (the
"Property Swap") with Anfield in
which the Company will receive Anfield's portfolio of 25 in-situ recovery
("ISR") uranium projects in Wyoming (the "Wyoming ISR Asset Portfolio") in
exchange for UEC's Slick Rock and Long
Park projects located in Colorado. The Wyoming ISR Asset Portfolio
increases UEC's Wyoming land
holdings by 50%, adding 55,119 acres of federal mining claims and
state mineral leases. This includes 7.1 million feet of drill
data with historic resources totaling 12.6 million lbs.
U3O8 (full details of the historic resources
acquired by UEC pursuant to the Property Swap can be found in Table
1 below).
The Wyoming ISR Asset Portfolio is comprised of the Charlie
project, located immediately adjacent to UEC's Christensen Ranch
property, along with nine projects in the Powder River Basin, seven
projects in the Great Divide Basin, four projects in the Wind
River Basin, three projects in the Shirley Basin, and one project in the Black
Hills.
The Charlie project is a state mineral lease that is 90%
surrounded by UEC's Christensen Ranch permit and wellfield
operations. The Charlie project ore body is well defined and
is a continuation of UEC's ore body located between Mine Unit 8 and
Mine Unit 10 at Christensen Ranch. A Wyoming Department of
Environmental Quality Permit to Mine exists for the Charlie project
which UEC intends to update to current standards for ISR mining and
incorporate the project as two additional Mine Units of the
Christensen Ranch project.
About Uranium Energy
Corp
Uranium Energy Corp is America's leading, fastest growing,
uranium mining company listed on the NYSE American. UEC is a pure
play uranium company and is advancing the next generation of
low-cost, environmentally friendly ISR mining uranium projects. The
Company has two production ready ISR hub and spoke platforms in
South Texas and Wyoming, anchored by fully licensed and
operational processing capacity at the Hobson and Irigaray Processing Plants. UEC
also has seven U.S. ISR uranium projects with all of their major
permits in place. Additionally, the Company has other
diversified holdings of uranium assets, including: 1) one of the
largest physical uranium portfolios of U.S. warehoused
U3O8; 2) a major equity stake in the only
royalty company in the sector, Uranium Royalty Corp; and 3) a
pipeline of resource-stage uranium projects in Arizona, New
Mexico, Texas, Wyoming 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.
Technical Disclosure
Table 1 – Wyoming ISR Asset Portfolio historic*
resources.
Project
|
Classification
|
Tons
(kt)
|
Uranium
Grade
(%
U3O8)
|
Contained
Uranium
(klbs
U3O8)
|
Charlie
|
Indicated
Inferred
|
1,255
411
|
0.12%
0.12%
|
3,100
988
|
Clarkson
Hill
|
Inferred
|
957
|
0.06%
|
1,113
|
Nine Mile
Lake
|
Indicated
Inferred
|
2,108
1,297
|
0.06%
0.07%
|
2,504
1,804
|
Red Rim
|
Indicated
Inferred
|
337
473
|
0.17%
0.16%
|
1,142
1,539
|
South
Sweetwater
|
M&I
Inferred
|
95
202
|
0.07%
0.07%
|
133
283
|
Total
|
M&I
Inferred
|
3,795
3,340
|
0.09%
0.09%
|
6,879
5,727
|
|
*The Company's
Qualified Person has not done sufficient work to classify these
historic estimates as current mineral resources and UEC is not
treating such historical resources as a current estimate of mineral
resources.
|
|
|
|
Notes to the historic
mineral resource estimates:
|
|
- Charlie: NI 43-101
compliant resource estimate dated September 5, 2018 and prepared by
BRS Engineering, Inc. Based on a 0.02% U3O8
cut-off grade.
- Clarkson Hill: NI
43-101 compliant resource estimate dated July 27, 2017 and prepared
by BRS Engineering, Inc. Based on
a 0.02% U3O8 cut-off grade.
- Nine Mile Lake: NI 43-101 compliant resource
estimate dated March 29, 2018 and prepared by BRS Engineering, Inc. Based on a 0.025%
U3O8
cut-off grade.
- Red Rim: NI 43-101 compliant resource
estimate dated March 31, 2017 and prepared by BRS Engineering, Inc. Based on a 0.025%
U3O8
cut-off grade.
- South Sweetwater:
NI 43-101 compliant resource estimate dated December 30, 2008 and
prepared by BRS Engineering, Inc.
Based on a 0.025% U3O8 cut-off grade.
|
|
|
|
|
Stock Exchange
Information:
NYSE
American: UEC
WKN: AØJDRR
ISN: US916896103
Notices to U.S.
Investors
The Wyoming ISR Asset Portfolio contains 12.6M pounds of "historic resources" which have
been estimated in compliance with CIM Definition Standards on
Mineral Resources and Mineral Reserves but should not be considered
or treated as current resources as defined under NI 43-101. These
resources should be considered a "historical estimate" as defined
under NI 43-101. In each instance, the reliability of the
historical estimate is considered reasonable, but a Qualified
Person has not done sufficient work to classify the historical
estimate as a current Mineral Resource, and UEC is not treating the
historical estimate as a current Mineral Resource.
The mineral resources referred to herein have been estimated in
accordance with the definition standards on mineral resources of
the Canadian Institute of Mining, Metallurgy and Petroleum referred
to in NI 43-101 and are not compliant with U.S. Securities and
Exchange Commission (the "SEC") Industry Guide 7 guidelines. In
addition, measured mineral resources, indicated mineral resources
and inferred mineral resources, while recognized and required by
Canadian regulations, are not defined terms under SEC Industry
Guide 7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. Accordingly, we have
not reported them in the United
States. Investors are cautioned not to assume that any part
or all of the mineral resources in these categories will ever be
converted into mineral reserves. These terms have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. In particular, it should be
noted that mineral resources which are not mineral reserves do not
have demonstrated economic viability. It cannot be assumed that all
or any part of measured mineral resources, indicated mineral
resources or inferred mineral resources will ever be upgraded to a
higher category. In accordance with Canadian rules, estimates of
inferred mineral resources cannot form the basis of feasibility or
other economic studies. Investors are cautioned not to assume that
any part of the reported measured mineral resources, indicated
mineral resources or inferred mineral resources referred to herein
are economically or legally mineable.
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release constitute
"forward-looking statements" as such term is used in applicable
United States and Canadian
securities 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. Many of these factors are
beyond the Company's ability to control or predict. 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. 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 news release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
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SOURCE Uranium Energy Corp