TORONTO, June 23, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") reports that all matters brought before its shareholders
were approved at the Annual & Special Meeting ("ASM") held
yesterday in Toronto,
Ontario. A total of 121,790,106 of the Corporation's common
shares were voted, representing 35% of its issued and outstanding
stock. In addition, 19.3 million warrants expired and 2.85
million warrants were exercised for gross proceeds of $99,750, which together reduce the number of
outstanding warrants by approximately 18%.
Warrant Exercise & Expiry
In the press release dated June
7th, 2017, U3O8 Corp. reported that a shareholder
had offered to have 19.3 million warrants accelerated at a strike
price of over double the current share price. The warrant
acceleration term ended at midnight last night, at which time the
warrants had not been exercised, and have therefore been
cancelled. "The shareholder who made this offer did so in the
broader interest of other shareholders in helping the Company
achieve a leaner capital structure. I would also like to
thank the shareholders who voted, providing a clear mandate to the
Board," said Richard Spencer, U3O8
Corp.'s President and CEO.
In addition, Dr. Keith Barron, a
director of the Corporation, exercised 2.85 million
out-of-the-money warrants for gross proceeds of $99,750 in order to provide the Company with
working capital without diluting other shareholders.
Key matters approved at the ASM include:
Consolidation and Deconsolidation of the Corporation's Stock
("Consolidation-Deconsolidation")
The goal of the Consolidation-Deconsolidation is to provide a
cost-effective method of paying out, for the value of shares held,
accounts of less than 1,000 U3O8 Corp. shares. Most accounts
that hold less than 1,000 shares are inactive and removal of these
accounts from the shareholder register would result in significant
administrative cost savings.
The Company will be offering a simple and cost-effective way for
shareholders, irrespective of account size, to purchase additional
shares of the Company prior to the Consolidation-Deconsolidation
coming into effect. The additional shares will be made available
within the next few business days via an "Existing Shareholder
Prospectus Exemption" ("ESPE") – and shareholders will have a two-
to three-week window in which to participate. General
information on the ESPE is available on the Company's homepage at
http://www.u3o8corp.com and specific terms of the financing will be
press released shortly.
The Consolidation-Deconsolidation was approved by 96% of the
shares voted, with 4% against.
Share Consolidation ("Consolidation")
Shareholders approved the proposal to undertake a Consolidation
of 20 current U3O8 Corp. shares to one new (post-Consolidation)
share. The aim of the Consolidation is to meet the metrics
required for larger funds to invest in the stock alongside the
Company's current shareholder base. The result of the
shareholder ballot was 86% of shares voted in favour and 14%
against. The Board intends to undertake the Consolidation
after the Consildation-Deconsolidation, described above, has been
completed.
Directors
Shareholders voted for the slate of directors proposed by
Management as follows:
Director
|
% Votes
For
|
% Votes
Abstained
|
Keith
Barron
|
98%
|
2%
|
David
Constable
|
98%
|
2%
|
David
Franklin
|
98%
|
2%
|
Pablo
Marcet
|
98%
|
2%
|
David
Marsh
|
98%
|
2%
|
Richard
Spencer
|
98%
|
2%
|
U3O8 Corp.'s Chairman, Mr David
Constable, commented: "I would like to formally thank
Darin Milmeister who offered not to
stand for re-election as a director, so as to allow David Marsh to be nominated without increasing
the size of the board. Darin provided sage advice and counsel
during his term on the board, for which I thank him. I
welcome David Marsh to the board and
look forward to working with him".
Auditors
98% of shares were voted in favour of the appointment of
Davidson and Company LLP to be the
Company's auditors for 2017.
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
This news release includes certain "forward looking
statements" related with the development plans, economic potential
and growth targets of U3O8 Corp's projects. Forward-looking
statements consist of statements that are not purely historical,
including statements regarding beliefs, plans, expectations or
intensions for the future, and include, but not limited to,
statements with respect to: (a) the low-cost and near-term
development of Laguna Salada, (b) the Laguna Salada and Berlin
PEAs, (c) the potential of the Kurupung district in Guyana, (d)
impact of the U- pgradeTM process on expected capital and operating
expenditures, and (e) the price and market for uranium. These
statements are based on assumptions, including 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) a joint venture
will be formed with the provincial petroleum and mining company on
the Argentina project, (iii) requisite regulatory and governmental
approvals will be received on a timely basis on terms acceptable to
U3O8 Corp., (iv) economic, political and industry market conditions
will be favourable, and (v) financial markets and the market for
uranium will improve for junior resource companies in the
short-term. Such statements are subject to risks and uncertainties
that may cause actual results, performance or developments to
differ materially from those contained in such statements,
including, but not limited to: (1) changes in general economic and
financial market conditions, (2) changes in demand and prices for
minerals, (3) the Company's ability to establish appropriate joint
venture partnerships, (4) litigation, regulatory, and legislative
developments, dependence on regulatory approvals, and changes in
environmental compliance requirements, community support and the
political and economic climate, (5) 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, (6)
competitive developments, (7) availability of future financing, (8)
exploration risks, 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.