| Wed 2 Jul 2008, 13:00 | | UUU - Uranium One Inc - Uranium One signs credit agreement and provides |
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UUU - Uranium One Inc - Uranium One signs credit agreement and provides
operational update
Uranium One Inc
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: UUU & ISIN: CA91701P1053
Share code on the TSX: UUU & ISIN: CA91701P1053
July 2, 2008
Uranium One Signs Credit Agreement and Provides Operational Update
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
announced today that it has concluded a senior secured revolving credit facility
and also provided an operational update.
Credit Facility
Under the terms of the facility, the Company has the ability to borrow up to
US$100 million from the lead lenders, Bank of Montreal and The Bank of Nova
Scotia. The facility has a two year term, and may be extended for a further
year with lender consent. Draw downs under the facility may be used for general
corporate purposes, including working capital requirements and funding capital
expenditures and acquisitions. The facility was arranged by BMO Capital Markets
and Scotia Capital as joint lead arrangers. Endeavour Financial acted as
financial adviser to Uranium One.
In addition to the funds available under the facility, as at June 15, 2008 the
Company`s consolidated cash position was approximately US$145 million.
Q2 2008 Sales and Deliveries
In line with the timing for deliveries under existing uranium sales contracts,
the Company`s attributable sales volume of U3O8 during Q2 2008 totalled 685,000
lbs, an increase of 180% over the 244,300 lbs sold in Q2 2007 and an increase of
142% over the 283,300 lbs sold in Q1 2008.
Kazakhstan
South Inkai - Industrial Production
Uranium One has recently been advised that the Kazakhstan Ministry of Energy and
Mineral Resources has, subject to the approval of reserves by the State
Committee for Geology, approved the application by the Company`s 70%-owned
Betpak Dala affiliate for an amendment to the South Inkai subsoil use agreement
to increase permitted production levels at South Inkai from 780,000 lbs U3O8
(300 tonnes U) per year to 5.2 million lbs U3O8 (2,000 tonnes U) per year.
Uranium One`s attributable production at full capacity is expected to be 3.6
million lbs U3O8 per year.
The amendment, previously anticipated to be granted in the first half of 2009,
is now expected to become effective in the second half of 2008. South Inkai is
continuing to exceed expectations and, from January 1 to the end of May 2008,
total pre-commercial production from the mine was approximately 479,500 lbs U3O8
(335,600 lbs attributable to Uranium One).
Sulphuric Acid
The new Kazakhmys Balkhash sulphuric acid plant located in eastern Kazakhstan
was commissioned and commenced acid production last month. This plant, which
has an annual capacity of 1.2 million tonnes of sulphuric acid, provides Kazakh
uranium producers, including the Company`s Betpak Dala and Kyzylkum Joint
Ventures in Kazakhstan, with a significant additional source of sulphuric acid
in the country. While production levels at the Company`s operations in
Kazakhstan have not to date been constrained by acid supply, the commissioning
of the Balkhash plant is expected to ensure that this will continue to be the
case.
Dominion Project
During the second quarter of 2008, the Company reached agreement on a new, two
year collective agreement covering its unionized workforce at the Dominion
Project. The new agreement replaces the 2005 collective agreement, which expired
in June 2008. It provides for graduated increases in base salary in line with
the Company`s expectations, as well as certain medical and pension benefits. The
Company wishes to acknowledge the constructive manner in which the union
approached the negotiations over the new agreement and looks forward to
continued good relations with its workforce at Dominion.
In June 2008, the Company received a certificate of registration from the South
African National Nuclear Regulator to commence exploration drilling on a portion
of the shallow Dominion Reefs (Ottosdal) extensions. A drilling campaign to test
these extensions is scheduled to commence in Q3 2008.
About Uranium One
Uranium One Inc. is a Canadian-based uranium producing 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 70% of the operating
Akdala Uranium Mine in Kazakhstan and is also developing the South Inkai and
Kharasan Uranium Projects in Kazakhstan. Uranium One owns the Dominion Uranium
Project in South Africa, as well as the Honeymoon Uranium Project in South
Australia. In the United States, Uranium One has extensive property holdings in
Wyoming, Texas, Utah and New Mexico, including the Shootaring Canyon Mill and
the Hobson ISR facility. Uranium One is also engaged in uranium exploration
activities in the United States, the Athabasca Basin of Saskatchewan, South
Africa and Australia.
For further information, please contact:
Jean Nortier Chris Sattler
Interim Chief Executive Officer Senior Vice President, Corporate Development
and Investor Relations
Tel: +27 11 482-3605 Tel: +1 (416) 350-3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Forward-looking statements: 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, 2007, 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.
For the purposes of NI 43-101 Standards of Disclosure for Mineral Projects of
the Canadian Securities Administration, Mr. M.H.G. Heyns, Pr.SCI.Nat. (SACNASP),
MSAIMM, MGSSA, Senior Vice President of Uranium One Inc., is the qualified
person who prepared or supervised the preparation of the information that forms
the basis of the scientific and technical disclosure contained in this news
release.
For further information about Uranium One, please visit www.uranium1.com.
Date: 02/07/2008 13:00:01 Produced by the JSE SENS Department.
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