Jun 29, 2007
UEX Not to Proceed with Shareholder Rights Plan
UEX Corporation ("UEX") announced today that it did not receive shareholder approval for its previously announced Shareholder Rights Plan ("Rights Plan") at its Annual General Meeting ("AGM") held on June 26, 2007. As a result, the Rights Plan terminated following completion of the AGM.
Approximately 111 million shares (61% of UEX's 182.1 million issued and outstanding common shares) were represented at the AGM. As proxies representing approximately 52% of these shares (including the proxy representing the approximately 40 million shares held by Cameco Corporation) were against approval of the Rights Plan, UEX withdrew this item of business from the agenda for the AGM. UEX noted that over 95% of the shares represented at the AGM voted in favour of the re-election of UEX's board of directors.
"I am very disappointed that the Rights Plan was not approved, as management believes that the Rights Plan would be in the best interest of minority shareholders," said Stephen Sorensen, President and CEO of UEX.
UEX is a Canadian uranium exploration and development company formed under an agreement between Pioneer Metals Corporation and Cameco Corporation ("Cameco"). Cameco, the world's largest supplier of uranium, is UEX's largest shareholder. UEX began trading on the Toronto Stock Exchange in July 2002 and is actively involved in the exploration and development of 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA Resources Canada Inc. ("AREVA") that is operated by UEX, ten under option from AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 30% of the global primary uranium production. UEX's exploration budget for 2007 is $25.0 million, and the Company has a cash position of approximately $68.0 million.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen
President & C.E.O.
Forward looking statements:
This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UEX believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.