TORONTO, June 7, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") is pleased to announce that, as part of the capital
restructuring spearheaded by the proposed share consolidation to be
voted upon at the Annual and Special Meeting to be held on
June 22, 2017, it has reached
agreement with a shareholder to reprice and accelerate an aggregate
total of 19.3 million previously issued common share purchase
warrants (the "Warrants'). In addition, Dr.
Keith Barron, founder and director
of U3O8 Corp., has offered to exercise out-of-the-money warrants as
a means of providing the Company with working capital that is not
dilutive to U3O8 Corp. shareholders.
Dr. Keith Barron commented: "As
one of its largest shareholders, I am committed to the success of
U3O8 Corp. Having spent a considerable amount of time in the
field studying the Company's Laguna Salada and Berlin deposits, I am convinced of their low
production cost potential. Consequently, I am positioning
myself for the inevitable rebound in uranium sector and for
accelerating growth in the battery commodities market."
Warrant Repricing and Acceleration
The warrants upon which agreement has been reached are tabulated
below, each having been linked to a private placement:
Expiry
Date
|
Issue
Date
|
Number
of
warrants
|
Exercise
Price
|
18-Jun-2017
|
18-Jun-2014
|
3,600,000
|
$0.13
|
05-Sep-2017
|
05-Sep-2014
|
2,500,000
|
$0.12
|
22-Oct-2017
|
22-Oct-2014
|
3,000,000
|
$0.08
|
02-Dec-2018
|
02-Dec-2014
|
3,600,000
|
$0.07
|
14-Feb-2019
|
14-Feb-2014
|
3,600,000
|
$0.11
|
29-May-2019
|
29-May-2014
|
3,000,000
|
$0.14
|
Warrants
|
|
19,300,000
|
|
None of the repriced and accelerated Warrants are held by
insiders of the Company.
The Toronto Stock Exchange (the "TSX") has provided conditional
approval for the Company to amend the exercise price of the
Warrants to $0.07 per share for a two
week period that ends at midnight on June
22, 2017, the day of the Company's Annual and Special
Meeting. Any of the Warrants that are not exercised by that
deadline will expire. The effective date of the amendment will be
on or after June 21, 2017.
Director Exercising Out-of-the-Money Warrants
Dr. Keith Barron has offered to
exercise approximately 2.85 million warrants that are priced at
$0.035, which will provide the
Company with approximately $100,000
in working capital.
The amended Warrants, plus those to be exercised by Dr. Barron,
represent approximately 18% of the Company's warrants.
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.