TORONTO, Aug. 31, 2016 /CNW/ - U3O8 Corp.
(TSX: UWE; OTCQX: UWEFF; SSE: UWECL) announces that
it is undertaking a best efforts non-brokered private placement of
up to 33,333,334 units ("Units") at a price of $0.03 per Unit, for gross proceeds of
approximately $1 million (the
"Offering").
Each Unit shall consist of one common share of U3O8 Corp.
("Share") and one Share purchase warrant ("Warrant"). Each
Warrant shall entitle the holder to purchase one Share at an
exercise price of $0.045 for a period
of 24 months from the closing date.
The net proceeds will be used principally to advance the Laguna
Salada uranium-vanadium deposit toward a pre-feasibility study
through:
- Pilot plant test work designed to generate more precise
estimates of operating and capital costs than those used in the
Preliminary Economic Assessment ("PEA") that was completed in
September 2014; and
- Further exploration of the La Susana and La Rosada discoveries
that have been made adjacent to the Laguna Salada Deposit.
Demonstrating uranium resource growth potential in these areas is a
priority for the advancement of the project because the PEA shows
that a larger resource is beneficial: the larger the deposit, the
better its economics.
Proceeds will also be used for general corporate purposes. The
securities issued and issuable pursuant to the Offering will be
subject to a statutory 4-month hold period. The Offering is subject
to a number of conditions, including, without limitation, receipt
of all regulatory approvals.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits
of uranium and associated commodities in South America.
Potential by-products from uranium production include commodities
used in the energy storage industry – in the manufacture of
batteries - such as nickel, vanadium and phosphate. The
Company's mineral resources estimates were made in accordance with
National Instrument 43-101, and are contained in three
deposits:
- Laguna Salada Deposit, Argentina – a PEA shows this near surface,
free-digging uranium - vanadium deposit has low production-cost
potential;
- Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production
potential due to revenue that would be generated from by-products
of phosphate, vanadium, nickel, rare earths (yttrium and neodymium)
and other metals that occur within the deposit; and
- Kurupung Deposit, Guyana – a uranium resource has been
estimated in four veins within a uranium-zirconium vein system.
Resources have been estimated on four veins, while consistent
mineralization of the same type has been intersected in scout
drilling of an additional six veins, while yet other veins require
first-time exploration drilling.
Information on U3O8 Corp., its resources and technical reports
are available at www.u3o8corp.com and on SEDAR at
www.sedar.com. Follow U3O8 Corp. on Facebook:
www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp
and Youtube: www.youtube.com/u3o8corp.
Forward-Looking Statements
Certain information in
this release are forward-looking statements with respect to the
development plans and economic potential of U3O8 Corp's current
projects. Forward-looking statements consist of statements
that are not purely historical, including statements regarding
beliefs, plans, expectations or intentions for the future, and
include, but not limited to, statements with respect to: (a) the
low-cost development goal of Laguna Salada, (b) the Laguna Salada
and Berlin PEAs, (c) the potential of the Kurupung district in
Guyana, and (d) completion and use of proceeds of the
Offering. Basis for such assumptions include that: (i)
actual results of our exploration, resource goals,
metallurgical testing, economic studies and development activities
will continue to be positive and proceed as planned, and
assumptions in the Laguna Salada and Berlin PEAs prove to be
accurate, (ii) requisite regulatory and governmental approvals will
be received on a timely basis on terms acceptable to U3O8 Corp.,
and (iii) economic, political and industry market conditions will
be favourable. However, such statements are subject to risks and
uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements, including, but not limited to: (1) that a mine will be
achieved on the Laguna Salada Project, the Berlin Deposit and other
exploration projects, (2) that beneficiation test work will
continue to be favourable and results from small scale
metallurgical testing can be duplicated on a larger scale, (3) the
inherent uncertainties and speculative nature associated with
exploration results, resource estimates, potential resource growth,
future metallurgical test results, changes in project parameters as
plans evolve, (4) volatility of commodity prices and market
conditions for uranium; (5) dependence on regulatory approvals and
changes in legislation, environmental compliance, community support
and the political and economic climate, (6) availability of future
financing, and (7) exploration risk and other factors beyond the
control of U3O8 Corp. including those factors set out in the "Risk
Factors" in our Annual Information Form available on SEDAR at
www.sedar.com. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
U3O8 Corp. assumes no obligation to update such information, except
as may be required by law. For more information on the above-noted
PEAs, refer to the September 18, 2014 technical report titled
"Preliminary Economic Assessment of the Laguna Salada
Uranium-Vanadium Deposit, Chubut Province, Argentina" and the
January 18, 2013 technical report titled "U3O8 Corp. Preliminary
Economic Assessment on the Berlin Deposit, Colombia."
SOURCE U3O8 Corp.