TORONTO, Aug. 3, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") is pleased to provide an update on activities since its
Annual and Special Meeting ("ASM") held on June 22, 2017, that includes:
- The closing of the Existing Shareholder Prospectus Exemption
("ESPE") financing announced on June 27,
2017;
- Next steps in the stock consolidation that was approved by
shareholders at the Company's recent ASM;
- Update on metallurgical test work that has been concluded in
Australia; and
- A note on the recent surge in vanadium prices.
Closing of the ESPE Financing
The Company raised $119,353 in a
financing that was available only to existing shareholders – a
financing that was designed to give smaller shareholders an
opportunity to increase their shareholding in the Company in a
cost-effective way prior to the share consolidation that was
approved at the ASM. U3O8 Corp. is one of the first resource
companies to use the ESPE financing model with a subscription form
that could be completed online. Minor issues were encountered
and successfully resolved in offering this format which included an
option of electronic payment through PayPal. The ESPE financing
closed on August 2, 2017.
Richard Spencer, President and
CEO of U3O8 Corp. commented, "I would like to thank the subscribers
to this financing for their patience and help with ironing out the
wrinkles of the process, and for making the first subscription
payments to a U3O8 Corp. financing by credit card. We are
well on our way to streamlining and simplifying the subscription
process. Future financings by the Company are likely to be
private placements, which are open only to accredited investors,
combined with ESPE, to ensure that all shareholders of U3O8 Corp.
have an equal opportunity to subscribe, irrespective of the size of
their shareholding."
Consolidation of Shares
The consolidation of U3O8 Corp.'s common shares, as approved by
shareholders at the ASM, will be undertaken shortly. A
further announcement will be made, and a letter of transmittal will
be mailed to shareholders and posted on the Company's profile on
www.sedar.com, which will provide all related details and
instructions.
For shareholders with less than 1,000 U3O8 Corp. shares, the
result of the consolidation is that their share position will be
cancelled and a cash payment made based on the trading price of the
shares on the date of 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 more than 1,000 shares, the
consolidation will be followed by a share split resulting in an
overall consolidation of each twenty previously issued and
outstanding common shares to one new share. The information
circular posted on the Company's profile on www.sedar.com provides
further background to the consolidation.
Metallurgical Test Work
Test work that was undertaken in Australia failed to achieve the results
anticipated due to the extremely fine-grained nature of the
uranium-vanadium minerals in the Laguna Salada gravel.
Ironically, it is this fine particle size that leads to the rapid
leaching of uranium and vanadium that is favourable for the
economics of the Project. It turns out that these fine minerals may
also be amenable to flotation as a means of concentrating the
metals beyond the levels attained by the methods described in the
preliminary economic assessment ("PEA") of the Deposit. The
objective of the test work will be to determine whether flotation
may result in lower cash costs of production for the
Deposit.
Surge in Vanadium Prices
The vanadium market moved into deficit last year as a result of
increased demand for vanadium-steel used mainly in the construction
industry, and greater demand for vanadium in lithium-ion and
vanadium redox flow batteries ("VRB"). The vanadium price
responded with a gain of 100% from its 10-year low reached in
early-2016. Its price surged a further 50% last week on an
announcement that China intends to
ban the importation of iron slag which had been a secondary source
of vanadium.
The selection of a VRB for the construction of the world's
largest battery is drawing attention to its energy storage capacity
at a truly industrial scale. The choice of the VRB for the
Dalian site in China was based on the battery's reliability,
life in excess of 20 years, and the fact that the electrolyte is
fully recyclable at the end of the battery's life. The 200 megawatt
/ 800 megawatt-hour battery has sufficient capacity to provide the
electricity required by 100,000 typical western homes for eight
hours.
Technical Information
Dr. Richard Spencer, P.Geo.,
CGeol., President and CEO of U3O8 Corp. and a Qualified Person as
defined by National Instrument 43-101, has approved the technical
information in this news release relating to the Laguna Salada
Deposit and the related PEA.
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.