TORONTO, June 27, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") announces the terms of a private placement that is being
made available to its existing shareholders through the Existing
Shareholder Prospectus Exemption ("ESPE") that was adopted by the
Toronto Stock Exchange ("TSX") in 2015.
Terms
The Company seeks to raise $250,000 through the sale of 10 million Units
priced at 2.5c per Unit ("Financing"). A Unit will consist of
a share and one half of a warrant. Each warrant will entitle
the holder to purchase a common share of the Corporation at a price
of 5c and shall be valid for 30 months. If the Corporation's
shares trade above 7c for 20 consecutive business days, the Company
may elect to accelerate the term of the warrants such that they
should be exercised within 30 days of notice of the acceleration
being given.
The ESPE financing will be open from today and is expected to
close at 5pm (Eastern Standard Time)
on July 18th, 2017, upon
receipt of final TSX approval.
Restrictions on the ESPE financing
The financing is open to persons who:
- Owned one or more common shares of the Corporation at the
Record Date of May 11, 2017 and who
still own one or more of the Corporation's common shares at today's
date; and
- Reside in Canada and elsewhere
except for the province of Newfoundland and Labrador and the USA.
Each shareholder who qualifies to purchase shares under the ESPE
rules may purchase up to $15,000 of
the Company's common stock per year. However, any qualifying
shareholder that makes a declaration on the subscription form that
he or she has obtained advice from a financial advisor in regard to
the purchase of the Corporation's stock is not subject to this
$15,000 ceiling. Due to
associated legal, regulatory and administration costs, the Company
requests that subscriptions be for at least $500 per shareholder.
Shares and warrants issued under the ESPE financing will subject
to a hold period of four months and one day.
Purpose
The purpose of the ESPE financing is twofold:
- To raise funds to refine and optimize metallurgical test work
on the Laguna Salada Deposit, focused on driving down estimated
production costs, and for general administrative purposes; and
- To provide existing shareholders with an opportunity to
cost-effectively increase their shareholding in the Company prior
to the capital restructuring that was approved by shareholders at
the Company's Annual and Special Meting held on June 22, 2017.
Subscription Procedure
Shareholders are requested to register their names and contact
details under the orange "Existing Shareholder Prospectus
Exemption" icon on the lower left of the home page of the
Company's website (http://www.u3o8corp.com) or by e-mailing
info@u3o8corp.com, and a link to a fillable PDF subscription
agreement will be sent to you for completion.
Subscriptions will be accepted by the Company on a "first come,
first served basis". Therefore, if the ESPE offering is
over-subscribed it is possible that a shareholder subscription may
not be accepted by the Company. Additionally, the Company
reserves the right, in a situation of over-subscription, to reduce
the number of Units available to each subscriber.
US Residents
Under US regulations, 25 US shareholders may participate in an
ESPE financing. If you are a resident of the USA and you are interested in participating in
the Financing, please register your interest under the "Existing
Shareholder Prospectus Exemption" icon on the home page of the
Company's website (http://www.u3o8corp.com) or by e-mail
info@u3o8corp.com at your earliest convenience, and please check
the "USA Resident" box. A
link to a USA-specific
subscription agreement will be sent to you.
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.