NYSE American: UEC
CORPUS
CHRISTI, Texas, Oct. 17,
2022 /CNW/ - Uranium Energy Corp (NYSE American: UEC)
(the "Company" or "UEC") is pleased to announce that it has
completed its previously announced acquisition of the Roughrider
uranium development project ("Roughrider" or the "Project") located
in the Athabasca Basin in
Saskatchewan, Canada (the
"Transaction") from a subsidiary of Rio Tinto plc ("Rio
Tinto").
Under the terms of the Transaction, Rio Tinto has now received
$80 million in cash and 17,805,815
UEC common shares, valued at $70
million based on the 5-day VWAP of $3.93 per UEC share as of October 7, 2022. The cash component of the
Transaction was funded using UEC's existing balance sheet, and
post-closing UEC has no debt and $93
million of cash and liquid assets.
Amir Adnani, President and CEO of
UEC, stated: "We are pleased to welcome Rio Tinto as a new
shareholder and value their vote of confidence in choosing to
complete this transaction with UEC. With the acquisitions of
Uranium One Americas, UEX and now Rio Tinto's Roughrider project,
we have created an unrivalled, pure play uranium company. Our
two-pronged approach combines best in-class 1) U.S. ISR production,
and 2) Canadian high-grade conventional pipeline. We see
unprecedented growth taking place in nuclear energy and growing
demand for uranium, driven by net-zero goals and global
decarbonization initiatives. With this backdrop, UEC offers
un-encumbered and un-hedged exposure for investors and is
positioned as a reliable supplier of uranium to western utilities
with the largest diversified North American focused projects and
resources."
Mr. Adnani continued: "By acquiring Roughrider, UEC has achieved
critical mass in Eastern Athabasca
basin to pursue stand-alone production plans. The 100% owned
Roughrider project will anchor our Canadian high-grade conventional
business and allow us to unlock value from the portfolio recently
acquired from UEX. Leveraging the first-tier ESG,
geotechnical and permitting work completed by Rio Tinto since 2012,
we now look forward to continuing to advance Roughrider along its
development path. This includes completion of a S-K 1300 technical
report, review and progress on permitting requirements, and the
commencement of a study on production plans."
Roughrider Acquisition Rationale and Highlights:
- World-class Project in a Premier Uranium Mining
Jurisdiction: Development-stage Roughrider Project has a
non-current, historic resource of 58 million lbs at an average
grade of 4.73% U3O8 situated in the eastern
Athabasca Basin of Canada, where 10% of global uranium production
was sourced in 2021.(1)(2)
- Unlocking Value and Immediate Synergies with Recent UEX
Acquisition: Roughrider will be a 100% owned cornerstone asset,
that when combined with recently acquired UEX Corporation
("UEX") projects in the eastern Athabasca, positions UEC with a critical mass
of resources to enhance future production plans. Recently acquired
and nearby UEC projects to Roughrider include Raven-Horseshoe,
Hidden Bay and Christie Lake.
- Scaling up in Canada's
High-Grade Athabasca Basin: After Cameco and Orano, UEC now
controls the largest diversified resource base, hosted in multiple
assets, in Canada's Athabasca Basin.
- Infrastructure, Nearby Operations and Long-Standing Uranium
History: There are over 20 uranium deposits, five current and
historically producing mines, and two uranium mills within a 100 km
distance from Roughrider, providing excellent infrastructure for
future development, including all-weather roads, an all-weather
airstrip within seven km and robust electrical grid access,
primarily generated from renewable hydroelectric power
sources.(3)
- Leveraging a Decade of Development Work on a Path to
Production: Since acquiring Roughrider in 2012, Rio Tinto, one
of the world's largest and most experienced mine builders, advanced
substantial pre-production and environmental baseline work. The
work includes completion of dedicated geotechnical drilling, shaft
vs. decline modelling, establishment of hydrogeological monitor
wells, terrestrial and aquatic environmental assessments, heritage
assessments, species at risk, and conceptual reclamation plan. This
provides a strong foundation and substantial value for completion
of upcoming technical reports, efficiently moving the Project
forward to a production decision.(4)
- Strong ESG Foundation: Starting from the environmental
baseline work and ESG initiatives established by Rio Tinto, UEC
intends to continue to develop and apply high industry standards in
stakeholder engagement, safety, and environmental stewardship. UEC
looks forward to engaging with local communities and other
stakeholders in the Athabasca
Basin in developing this Project for the benefit of future
generations.
Notes:
- Subject to the completion of S-K 1300 technical report
summary by UEC after closing.
- World Nuclear Association – World Uranium Mining Production and
Largest Producing Uranium Mines in 2021.
- Cameco Corporation 2021 ESG Report, SaskPower System Map
accessible at https://www.saskpower.com
- Saskatchewan Environment Publication 2013-014, "Rio Tinto –
Roughrider Advanced Exploration Program", accessible at
http://www.environment.gov.sk.ca/2013-014EISMainDoc
The technical information in this news release has been reviewed
by Clyde L. Yancey, P.G., Vice
President-Exploration for the Company, being a Qualified Person
under Item 1302 of Regulation S-K.
Advisors and Counsel
Rothschild & Co and BMO Capital Markets acted as financial
advisor to UEC in connection with the Transaction. McMillan LLP
acted as legal advisor to UEC.
About Uranium Energy
Corp
Uranium Energy Corp is the fastest growing supplier of the fuel
for green energy transition to a low carbon future. UEC is the
largest, diversified North American focused uranium company,
advancing the next generation of low-cost, environmentally friendly
In-Situ Recovery (ISR) mining uranium projects in the United States and high-grade conventional
projects in Canada. The Company
has two production-ready ISR hub and spoke platforms in
South Texas and Wyoming, anchored by fully licensed and
operational central processing plants. UEC also has seven U.S. ISR
uranium projects with all their major permits in place.
Additionally, the Company has diversified uranium holdings
including: (1) one of the largest physical uranium portfolios of
U.S. warehoused U3O8; (2) a major equity
stake in Uranium Royalty Corp., the only royalty company in the
sector; and (3) a pipeline of resource stage uranium projects. The
Company's operations are managed by professionals with decades of
hands-on experience in the key facets of uranium exploration,
development, and mining.
Stock Exchange
Information:
NYSE American: UEC
WKN: AØJDRR
ISN: US916896103
Notice to U.S. Investors
UEC is now subject to the requirements of Regulation S-K
(subpart) 1300 – Disclosure by Registrants Engaged in
Mining Operations with respect to disclosure of mining
operations that are material to it. UEC can only rely
on technical information contained in a technical report
summary prepared in accordance with Regulation S-K (subpart)
1300.
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
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