TORONTO, Dec. 11, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") is pleased to announce that it has granted stock options
("Options") to Mr. David Marsh, who
was elected to the Company's Board of Directors ("Board") at its
Annual and Special Meeting on June
22, 2017. Mr. Marsh's extensive and unique experience
in the processing, optimization and extraction of uranium and
battery commodities are skills essential to the Company achieving
its priorities for advancing the Laguna Salada uranium-vanadium
deposit in Argentina
including:
- Proof of concept uranium and vanadium extraction from bulk
samples; and
- Pilot plant test work to refine operational and capital cost
estimates.
U3O8 Corp.'s President & CEO commented, "Dave Marsh has already had an impact on the
Company by completing a thorough review of the process flow-sheet
that forms the core of the Preliminary Economic Assessment
("PEA"). Based on his extensive experience, he has identified
various areas in which the Laguna Salada flow-sheet has potential
to be simplified. If this simplification proves to be
possible, significant reductions in operational and capital cost
estimates may be achievable. A second area in which we have
potential to drive down operational cost estimates is through
exploration that is currently underway, successfully identifying
additional higher-grade channels at the base of the gravel
layer. These project-orientated initiatives would also be
boosted if Argentina's federal
government implements a proposed reduction in corporate income
tax".
Dave Marsh's Mineral
Processing and Metal Extraction Experience
Mr. Marsh was
involved with initial test work and development of alkaline leach
as the optimal processing technique for the Langer Heinrich uranium
deposit – and the adoption of the technology as a go-to standard
for the uranium industry. Alkaline leach is the technology
that is most appropriate for the extraction of uranium and vanadium
from the Laguna Salada Deposit.
Stock Option Grant
Mr. Marsh has been granted 57,500
stock options that have a strike price of C$0.51 and have a term of five years. The
options vest in tranches of 25%, with 25% vesting immediately and
the remaining tranches at six-monthly intervals with the final
vesting date being June 11, 2019.
Board Compensation Related to Market Conditions
Mr.
Marsh has adopted the approach taken by the Company's other
independent directors to forego compensation. The Board
took the decision to waive directors' fees in January, 2015 in
recognition of the prevailing difficult uranium market
conditions. "The recent production cuts announced by the
largest and lowest-cost uranium producers, KazAtomProm and Cameco,
could result in a fundamental rebalancing of the international
market that should lead to a strengthening uranium prices," said
U3O8 Corp.'s chairman, Mr. David
Constable. "We anticipate that uranium could follow
the lead of the vanadium market in which production cuts in an
environment of increasing demand have led to a rally in the price
of the metal."
Technical Information & Cautionary Note
A 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.
Further details on U3O8 Corp.'s Laguna Salada Deposit and
Argentina's electricity generation
from large nuclear reactors, as well as its prototype small modular
reactor that represents a prime export opportunity, are available
in the Company's Corporate Presentation accessible on the homepage
of our website http://www.u3o8corp.com.
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.