News
Mar 27, 2009
UEX Announces $8.0 Million Underwritten Private Placement of Flow-Through Common Shares
UEX Corporation ("UEX") is pleased to announce that it has entered into an agreement with a syndicate of Underwriters led by Dundee Securities Corporation, and including Cormark Securities Inc., pursuant to which the Underwriters have agreed to find purchasers, on an underwritten private placement basis, for 8,000,000 flow-through common shares at a price of $1.00 per flow-through common share for aggregate gross proceeds to UEX of $8.0 million (CDN).
Proceeds of the flow-through common shares will be used to accelerate exploration and development of UEX's uranium deposits at its 100%-owned Hidden Bay Project located in the eastern Athabasca Basin area of northern Saskatchewan, Canada. UEX will agree to incur and renounce qualifying Canadian Exploration Expenditures under the Income Tax Act (Canada) to purchasers of the flow-through common shares in an amount equal to the subscription price of such shares.
The offering is scheduled to close on or about April 15, 2009 and is subject to certain conditions including the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 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 jointventured with AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 356,088 hectares (879,913 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 21% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the West Bear, Raven and Horseshoe Deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin. UEX's exploration and development budgets for 2009 are estimated at approximately $17.5 million, of which UEX will be responsible for approximately $11.9 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.
Proceeds of the flow-through common shares will be used to accelerate exploration and development of UEX's uranium deposits at its 100%-owned Hidden Bay Project located in the eastern Athabasca Basin area of northern Saskatchewan, Canada. UEX will agree to incur and renounce qualifying Canadian Exploration Expenditures under the Income Tax Act (Canada) to purchasers of the flow-through common shares in an amount equal to the subscription price of such shares.
The offering is scheduled to close on or about April 15, 2009 and is subject to certain conditions including the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 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 jointventured with AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 356,088 hectares (879,913 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 21% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the West Bear, Raven and Horseshoe Deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin. UEX's exploration and development budgets for 2009 are estimated at approximately $17.5 million, of which UEX will be responsible for approximately $11.9 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.