| Thu 29 Mar 2007, 15:25 | | SXR - SXR Uranium One Inc - Uranium One Announces |
|
SXR
SXR
SXR - SXR Uranium One Inc - Uranium One Announces Financial Results for 2006
SXR Uranium One Inc
(Formerly Southern Cross Resources Inc.)
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR & ISIN: CA87112P162
Share code on the TSX: SXR & ISIN: CA87112P162
("Corporation")
March 29, 2007
Uranium One Announces Financial Results for 2006
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc.
("Uranium One") today reported audited financial results for the twelve
months ended December 31, 2006. All figures are in US dollars unless
otherwise indicated. Complete details of the December 31, 2006 financial
statements and accompanying management`s discussion and analysis of
financial condition and results of operations can be found on Uranium One`s
website at www.uranium1.com and will be made available on SEDAR at
www.sedar.com.
Highlights for the fiscal year 2006 include the following:
Financial
Total revenue of $3.3 million in 2006, compared to $2.7 million in 2005
primarily due to a higher realized gold price
In line with expectations, an operating loss of $50.7 million and net loss
of $43.1 million (38.33 cents per share), compared to an operating loss of
$27.3 million and net loss of $41.7 million (58.67 cents per share)
primarily due to general and administrative expenditures as well as
exploration expenditures
Increase of $131.8 million in non-current assets to $290.3 million at
December 31, 2006 from $158.5 million at December 31, 2005 primarily as a
result of additions to property, plant and equipment at Dominion, Honeymoon
and at Modder East
Cash balances rose to $327.5 million as at December 31, 2006 from $10.9
million as at December 31, 2005 primarily due to the issuance of common
shares and a convertible debenture during the year
Dominion Uranium Project
Completion of feasibility study on Phase 1 and preliminary assessment on
Phase 2; commencement of conceptual studies on Phases 3 and 4 of the Project
Continued progress towards hot commissioning of the Dominion uranium plant,
leading to the commissioning of the atmospheric leach section in February
2007
Significant increase in uranium resources:
Indicated U3O8 resources of 36.4 million tonnes grading 0.81 kg/t,
containing 64.9 million pounds U3O8, representing a 303% increase during the
year
Inferred U3O8 resources of 219.4 million tonnes grading 0.38 kg/t,
containing 183.6 million pounds U3O8, representing a 25% increase during the
year
Receipt of new order mining right
Receipt of new prospecting rights adjacent to Dominion, resulting in a
substantial increase in exploration potential on the shallow strike
extensions
Agreed terms for the sale of 4.7 million pounds of U3O8 between 2008 and
2012 to western utilities with market-related pricing and escalating floor
price protection
Honeymoon Uranium Project
Completion of a feasibility study and commencement of Project construction
Aflease Gold Limited
Completed the reverse takeover of Sub Nigel Gold Mining Company Limited
Share exchange agreement for the acquisition, at the election of Aflease
Gold, of between 7.5 million and 13 million shares of Randgold and
Exploration Ltd.
Completion of a feasibility study for the Modder East Gold Project and
commencement of Project construction
Commencement in the first quarter of 2007 of a pre-feasibility study for Sub
Nigel
Capital Raising
Completed a private placement in February for net proceeds of $137.6 million
Completed a common share prospectus offering in October for net proceeds of
$143.4 million
Completed a convertible debenture prospectus offering in December for net
proceeds of $128.9 million
Through a subsidiary, raised ZAR 350.0 million (approximately $45.1 million)
under a futures-related term facility entered into with Nedcor Securities of
South Africa
Other
Continued to strengthen and expand the Board and senior management team to
accommodate corporate growth and development
Subsequent Events in Q1 2007
On February 12, 2007, Uranium One and UrAsia Energy Ltd. ("UrAsia") entered
into a definitive arrangement agreement under which Uranium One will acquire
all of the outstanding common shares of UrAsia. The business combination
will be effected by way of a court-approved plan of arrangement under the
Business Corporations Act (British Columbia). Under the terms of the
arrangement, all holders of UrAsia shares will receive 0.45 Uranium One
shares for each UrAsia share held. It is expected that the current
shareholders of Uranium One will own approximately 40%, and the current
shareholders of UrAsia will own approximately 60%, of the combined company
after giving effect to the arrangement. Closing is subject, among other
things, to UrAsia shareholder approval and applicable court and regulatory
approvals.
On February 23, 2007, Uranium One entered into a definitive agreement with
U.S. Energy Corp. for the purchase of the Shootaring Canyon Uranium Mill in
Utah, as well as a land package comprising approximately 38,763 acres of
uranium exploration properties in Utah, Wyoming, Arizona and Colorado and a
substantial database of geological information for consideration equal to
6,607,605 Uranium One common shares plus the sum of $750,000 in cash paid by
Uranium One on the execution of a July 2006 exclusivity agreement with the
vendor. Closing is subject, among other things, to applicable regulatory
approvals.
Commenting on the Corporation`s progress, Neal Froneman, President and Chief
Executive Officer of Uranium One, said: "Since forming Uranium One in
December 2005, we have made significant progress towards our goal of
becoming a senior uranium company. We have started processing ore at
Dominion and this time next year we expect production to commence at
Honeymoon in Australia. Upon completion of the UrAsia and U.S. Energy
transactions, we will become a globally diversified uranium producer with
uranium assets in the world`s five major uranium resource jurisdictions -
South Africa, Australia, the United States, Canada and Kazakhstan. We
remain un-hedged, and well positioned to take advantage of the strong
uranium price and the expected future buoyancy of the market."
About Uranium One
Uranium One Inc. is a Canadian uranium and gold resource company with a
primary listing on the Toronto Stock Exchange and a secondary listing on the
JSE Limited (the Johannesburg stock exchange). The Corporation owns the
Dominion Reefs Uranium Mine in South Africa and the Honeymoon Uranium
Project in South Australia, and is actively pursuing growth opportunities in
the uranium sector in the United States and Central Asia. The Corporation
holds a majority interest in Aflease Gold Limited, which owns the Modder
East Gold Project in South Africa. Through a 50/50 joint venture with
Pitchstone Exploration Ltd., the Corporation is also engaged in uranium
exploration activities in the Athabasca Basin of Saskatchewan.
For further information, please contact:
Jean Nortier Chris Sattler
Chief Finance Officer Vice President, Investor Relations
Tel: + 27 11 482 3605 Tel: + 1 416 671 3341
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Readers are advised to refer to independent technical reports on Uranium
One`s material properties available at www.sedar.com for detailed
information with respect to the Corporation`s properties. Those technical
reports provide the date of each resource or reserve estimate, details of
the key assumptions, methods and parameters used in the estimates, details
of quality and grade or quality of each resource or reserve and a general
discussion of the extent to which the estimate may be materially affected by
any known environmental, permitting, legal, taxation, socio-political,
marketing, or other relevant issues. The technical reports also provide
information with respect to data verification in the estimation.
This news release uses the terms "measured", "indicated" and "inferred"
resources as defined in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects. United States investors are
advised that while these terms are recognized and required by Canadian
regulations, the SEC does not recognize them. Investors are cautioned not
to assume that all or any part of the mineral deposits in these categories
will ever be converted into reserves. In addition, "inferred resources" have
a great amount of uncertainty as to their existence and economic and legal
feasibility and it cannot be assumed that all or any part of an inferred
mineral resource will be ever be upgraded to a higher category. Investors
are cautioned not to assume that all or any part of an inferred resource
exists or is economically or legally mineable. Mineral resources are not
mineral reserves and do not have demonstrated economic viability. Scientific
and technical information contained herein has been reviewed on behalf of
Uranium One by Dr. R.A.Stewart, Pr.Sci.Nat. (SACNASP), MGSSA, Regional
Exploration Geologist, who is a qualified person for the purposes of NI 43-
101.
This news release contains certain forward-looking statements. Forward-
looking statements include but are not limited to those with respect to the
price of uranium and gold, the estimation of mineral resources and reserves,
the realization of mineral reserve estimates, the timing and amount of
estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes or
claims and limitations on insurance coverage and the timing and possible
outcome of pending litigation. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes" or
variations of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Uranium One to be materially different from
any future results, performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include, among
others, the actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, possible variations in grade and ore densities or recovery rates,
failure of plant, equipment or processes to operate as anticipated,
accidents, labour disputes or other risks of the mining industry, delays in
obtaining government approvals or financing or in completion of development
or construction activities, risks relating to the integration of
acquisitions, to international operations, to prices of uranium and gold as
well as those factors referred to in the section entitled "Risk factors" in
Uranium One`s Annual Information Form for the year ended December 31, 2006
which is available on SEDAR at www.sedar.com and which should be reviewed in
conjunction with this document. Although Uranium One has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no assurance
that forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-
looking statements. Uranium One expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except in accordance
with applicable securities laws.
To receive the Corporation`s news releases by email, please register on
Uranium One`s website - www.uranium1.com.
Date: 29/03/2007 15:25:17 Produced by the JSE SENS Department.
