| Wed 22 Oct 2008, 14:00 | | UUU - Uranium One Inc - Uranium One to Place Dominion Operations on Care and |
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UUU - Uranium One Inc - Uranium One to Place Dominion Operations on Care and
Maintenance
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
October 22, 2008
Uranium One to Place Dominion Operations on Care and Maintenance
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
("Uranium One") today announced that its board of directors has decided to place
the Dominion Uranium Project on care and maintenance.
The decision to place Dominion on care and maintenance reflects the significant
deterioration in the Project`s economics associated with the continuing decline
in uranium prices over the last year and significant inflation-related increases
in Project costs, together with a slower than expected ramp-up in development
and production.
The decision follows the completion of the Company`s detailed life of mine
planning process and budget for the Project, which has shown that the Project
would require a sustained recovery in uranium prices, as well as significant
additional capital investment, in order to become economically viable. While
the longer term fundamentals of the uranium market remain attractive, Uranium
One is not able, in light of current credit and general market conditions, to
incur the required additional capital investment at this time.
In accordance with the requirements of applicable South African legislation,
Uranium One has initiated consultations with the National Union of Mineworkers
and Uranium One`s joint venture partners with regard to today`s decision and
will be providing notification thereafter to the South African regulatory
authorities. In the meantime, Uranium One will be exploring strategic
alternatives available to it at Dominion, including a sale or other disposition
of its interest in the Project and, absent any improvement in Project economics,
the potential closure of the Project.
Uranium One expected to produce 1.1 million pounds U3O8 from Dominion in 2009;
revised production guidance for the Uranium One group will be provided with the
Company`s third quarter financial results in mid-November 2008. Uranium One is
in the process of assessing the values at which the Dominion assets are carried
in its financial statements.
Uranium One`s consolidated cash balance as at September 30, 2008 of US$99
million, together with the US$65 million subsequently drawn under Uranium One`s
Canadian credit facility, will provide Uranium One with sufficient cash
resources to permit it to continue with planned operational and capital
expenditures in Kazakhstan and the United States, after providing for estimated
suspension costs at Dominion.
Jean Nortier, Chief Executive Officer of Uranium One said:
"While today`s decision is unfortunately the only course of action open to us in
the current economic climate, we will be working with our joint venture partners
and other Project stakeholders, with a view to identifying and evaluating all
options potentially available for Dominion. At this time, I would like to
express my sincere thanks to the management team and the workforce at Dominion -
their dedication, hard work and support over the past several years have been
greatly appreciated."
Uranium One will be hosting a conference call and webcast to discuss the
situation at Dominion at 10:00 a.m. (Eastern Time) on Wednesday, October 22,
2008. Participants may join the call by dialing toll free 1-800-590-1817 or 1-
416-644-3417 for local calls or calls from outside Canada and the United States.
A live webcast of the call will be available through CNW Group`s website at:
www.newswire.ca/webcast
A recording of the conference call will be available for replay for a two week
period beginning at approximately 12:00 p.m. today by dialing toll free 1-877-
289-8525 or 1-416-640-1917 for local calls or calls from outside Canada and the
United States. The passcode for the replay is 21286933. A replay of the
webcast will be available on our website at www.uranium1.com.
For further information, please contact:
Jean Nortier
Chief Executive Officer
Tel: + 1 604 601 5642
Chris Sattler
Senior Vice President, Corporate Development and Investor Relations
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 press release contains certain forward-looking
statements. Forward-looking statements include but are not limited to those
with respect to the price of uranium, 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 further information about Uranium One, please visit uranium1.com.
Date: 22/10/2008 14:00:10 Produced by the JSE SENS Department.
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