NYSE American: UEC
- Maturity of existing $20
million Sprott credit facility is extended to January 31, 2022, further strengthens the
Company's working capital position and financial flexibility.
- No principal repayments until maturity.
- Completion of royalty sales creates a new significant
ownership stake in Uranium Royalty Corp.
CORPUS CHRISTI, TX,
Dec. 6, 2018 /CNW/ - Uranium Energy
Corp (NYSE American: UEC, the "Company" or "UEC") is pleased to
announce that the Company and its lenders, which include Sprott
Resource Lending Partnership, have agreed to extend the Company's
current $20,000,000 senior secured
credit facility (the "Credit Facility") to January 31, 2022 without any principal repayments
required until maturity (collectively, the "Credit Facility
Extension").
Amir Adnani, President and CEO,
stated, "The Company's cash position of approximately $24.5 million, the Credit Facility Extension and
the royalty sales together evidence UEC's strong balance sheet
heading into 2019. The Credit Facility Extension allows us to
maximize working capital to advance our portfolio of low-cost and
production-ready ISR projects in Texas and Wyoming in this critical time for the U.S.
uranium industry. Additionally, the agreement with
Uranium Royalty Corp. increases our ownership in this exciting
venture to over one-third, adding a long-term asset to our uranium
portfolio and balance sheet."
The interest rate for the Credit Facility remains unchanged at
8%. In connection with the Credit Facility Extension, the
Company has issued a total of 1,180,328 common shares of the
Company to the lenders as an extension fee. As with the
Company's prior Credit Facility, should any principal be
outstanding on each of November 30,
2019, 2020 and 2021, an annual fee will continue to be due
in cash or stock, at the option of the Company, at the rate of 7%,
6.5% and 6%, respectively, on each such date.
Royalties sale completed
The Company recently closed a royalty purchase agreement with
Uranium Royalty Corp. ("URC"). The Company, together with one of
its wholly-owned subsidiaries, sold a one percent (1%) net smelter
return royalty (collectively, the "Royalties") for uranium on UEC's
hard-rock conventional projects, Slick Rock (Colorado), Workman Creek (Arizona) and Anderson (Arizona). As consideration for the sale
of the Royalties, UEC received 12,000,000 common shares of URC
representing, along with UEC's prior interest, over a 34% holding
in URC as of this date. URC is a private company with a unique and
sole focus on uranium royalty and streaming assets. It is also a
large and strategic shareholder in Yellow Cake PLC (AIM: YCA), a
holder of physical uranium.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium mining and
exploration company with additional titanium and vanadium assets.
The Company's fully-licensed Hobson Processing Facility is
central to all of its uranium projects in South Texas, including the Palangana ISR mine,
the permitted Goliad ISR project and the development-stage Burke
Hollow ISR project. In Wyoming, UEC controls the permitted
Reno Creek ISR uranium project. Additionally, the Company controls
a pipeline of advanced-stage uranium projects in Arizona, Colorado, New
Mexico and Paraguay. The
Company also controls a large high-grade titanium project in
Paraguay and significant vanadium
resources in combination with its Slick Rock uranium project in
Colorado. 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.
The securities referred to in this news release have not been
registered under the United States
Securities Act of 1933, as amended, and may not be offered
or sold in the United States
absent registration or an applicable exemption from registration
requirements.
Stock Exchange Information:
NYSE American: UEC
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release and oral statements
made from time to time by representatives of the Company are or may
constitute "forward-looking statements" as such term is used in
applicable United States and
Canadian laws and including, without limitation, within the meaning
of the Private Securities Litigation Reform Act of 1995, for which
the Company claims the protection of the safe harbor for
forward-looking statements. 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.
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. The
Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. 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. 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