TORONTO, Aug. 23, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") reports on provisional timing of the consolidation of
the Company's common shares and on the decision to amend the terms
of certain common share purchase warrants.
Provisional Timetable for the Consolidation of the Company's
Common Shares
Based on the approval of the Company's shareholders at the
June 22, 2017 Annual & Special
Meeting ("ASM"), the Company has received approval from the Toronto
Stock Exchange ("TSX") to undertake a consolidation of one new
share for twenty old shares on an effective basis.
Shareholders with less than 1,000 old shares will be paid out for
the value of those shares and will cease to be shareholders of the
Corporation.
The consolidation is anticipated to be effective on September 11, 2017. A letter of transmittal
has been mailed to shareholders and is available on the Company's
profile on SEDAR, www.sedar.com, which provides all related details
and instructions to shareholders.
As noted above, the effect of the consolidation depends on the
number of shares held, as follows:
- For shareholders with less than 1,000 common shares of U3O8
Corp., the result of the consolidation is that their share position
will be cancelled and a cash payment of CDN$0.0253 per share will be made based on the
TSX five day weighted average trading price of the shares ending on
the date prior to approval at the ASM (June
22, 2017). The consolidation provides a simple and
cost-effective means of reducing the number of small common share
lots that cost the Company a disproportionate amount in
administration expenses.
- For shareholders holding 1,000 or more common shares of U3O8
Corp., their shares will be automatically consolidated such that
each twenty previously issued and outstanding common shares will be
exchanged to one new share. The information circular posted on the
Company's profile on SEDAR, www.sedar.com, provides further
background to the consolidation.
Amendment to Terms of Certain Warrants
The Board of the Company has decided to amend the terms of
common share purchase warrants (the "warrants") that are due to
expire close to the date of the share consolidation so that the
holders of the warrants have a fairer opportunity to assess whether
they want to exercise their warrants. The warrants affected
are:
(a) 2,500,000 warrants issued on September 8, 2015 as part of a private placement,
having an original expiry date of September
8, 2017. Each Warrant entitles the holder to purchase one
common share of the Company at a price of CDN$0.13 per share. On a post-consolidation
basis, these warrants are equivalent to 125,000 warrants with an
exercise price of $2.60 per
share;
(b) 180,000 broker warrants issued on September 23, 2015 as part of a private
placement, having an original expiry date of September 23, 2017. Each Warrant entitles the
holder to purchase one common share of the Company at a price of
CDN$0.04 per share. On a
post-consolidation basis, these warrants are equivalent to 9,000
warrants with an exercise price of $0.80 per share; and
(c) An aggregate of 2,500,000 warrants issued on
October 03, 2015 as part of a private
placement, having an original expiry date of October 3, 2017. Each Warrant entitles the holder
to purchase one common share of the Company at a price of
CDN$0.11 per share. On a
post-consolidation basis, these warrants are equivalent to 125,000
warrants with an exercise price of $2.20 per share.
The expiry date of the above-listed warrants will be extended to
December 29, 2017. The exercise
price will be repriced to CDN$0.022
per common share, which on post-consolidation basis is equivalent
to an exercise price of CDN$0.44 per
common share.
None of the warrants issued under the private placements listed
above have been exercised to date, and none of these warrants are
held, directly or indirectly, by any insiders of the Company.
The amendments to the 2017 warrants are subject to approval
of the TSX. The amendment to the warrants will not become effective
until at least ten business days from the date of this
announcement. A further update will be made upon the TSX
providing final approval for the amendment to the terms of the
warrants.
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.