TORONTO, Oct. 4, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") announces that it intends to proceed with a non-brokered
private placement to raise up to one million
Canadian Dollars ("C$) in gross proceeds through the sale of
approximately 3 million units with each unit ("Unit") consisting of
a share and a warrant.
Terms of the Private Placement
The price of a Unit has been set at C$0.34. Each Unit shall consist of:
- One share;
- A warrant that provides the subscriber with the right to
purchase an additional share at a price of C$0.45 for a period of 2½ years (30 months) from
the date of the financing;
- Number of Units being offered: 3,000,000;
- Potential gross proceeds: C$1,020,000.
The shares and warrants issued will have a hold period, during
which they cannot be traded, for four months from the date of the
closing of this financing.
This financing is available to Accredited Investors as well as
to existing shareholders through the Existing Shareholder
Prospectus Exemption ("ESPE") that allows any U3O8 Corp.
shareholder to purchase up to C$15,000 of the Company's stock per year, without
needing to be an Accredited Investor. Since an Accredited Investor
designation requires a net worth of C$1
million or an annual income of C$200,000 or other similar financial and
institutional criteria, the ESPE opens the participation in the
Company's financing, and the access to warrants, to a much broader
spectrum of investors. Additional information on the document
that needs to be completed for subscription to the ESPE financing
may be found on the Company's website,
http://www.u3o8corp.com/investors/existing-shareholder-prospectus-exemption/.
Use of Proceeds
Funds raised from the financing will be used for pilot plant
test work on the Laguna Salada uranium-vanadium deposit in
Argentina, as well as for general
administrative purposes. The Preliminary Economic Assessment
("PEA") conducted on the Laguna Salada Deposit defined specific
opportunities for lowering both operating and capital costs on the
Project. The planned work will test some alternative
processes to those in the current flow sheet to confirm their
superior efficiency. In addition, the recognition of the role
that vanadium redox batteries can play in cost-effective,
industrial-scale electricity storage is starting to contribute to a
supply shortage that has led to sharply higher vanadium
prices. Consequently, we plan to test ways of extracting more
vanadium from the Laguna Salada Deposit.
Commission
Although the financing is non-brokered, any broker who
introduces an investor to the financing will be paid a commission
of 7% of the value of the client's investment and 7% in broker
warrants priced at C$0.45 and valid
for a period of two years from the date of closing of the
financing. Broker warrants are also subject to the four-month
hold period.
Technical Information
Cautionary Note: the PEA is preliminary in nature, and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the results of the PEA
assessment will be realized.
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 battery commodities in South America. Battery
commodities that occur with uranium resources include vanadium,
nickel, zinc 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:
http://www.facebook.com/u3o8corp, Twitter:
http://www.twitter.com/u3o8corp and YouTube:
http://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.