| Tue 10 Feb 2009, 9:30 | | UUU - Uranium One Inc - News Release |
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UUU - Uranium One Inc - News Release
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
NEWS RELEASE
Uranium One Announces C$270 Million Financing and
Formation of Strategic Relationship with Japanese Consortium
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
today announced that it has entered into a subscription agreement with a
corporation formed by The Tokyo Electric Power Company, Incorporated, Toshiba
Corporation, and The Japan Bank for International Cooperation providing for the
private placement of an aggregate of 117,000,000 common shares of Uranium One,
for gross proceeds of approximately C$270 million.
Concurrently with the execution of the subscription agreement, Uranium One has
also entered into a long-term offtake agreement and a strategic relationship
agreement with the Japanese consortium, both of which will become effective upon
closing of the private placement.
The offtake agreement provides the consortium with an option to purchase, on
industry-standard terms, up to 20% of Uranium One`s available production from
assets in respect of which Uranium One has the marketing rights.
Under the strategic relationship agreement, the Japanese consortium has the
right to appoint two directors to the Uranium One board and a right of first
opportunity to invest in any uranium mining asset or project which Uranium One
may in its discretion decide to make available to third parties. This agreement
also contains a standstill provision under which the consortium has agreed,
subject to certain exceptions, not to acquire without Uranium One`s prior
approval more than 19.95% of Uranium One`s issued common shares. The Japanese
consortium has also agreed not to dispose of any significant portion of its
Uranium One shares except by way of a broad market distribution or pursuant to
certain other limited exceptions.
The rights granted under both the offtake agreement and the strategic
partnership agreement are generally subject to the consortium continuing to meet
certain equity ownership thresholds.
The private placement issue price of C$2.30 per share represents a 15% premium
to the 20-day volume weighted average price of Uranium One common shares on the
Toronto Stock Exchange. Upon closing of the private placement, the consortium
will have a 19.95% equity stake in Uranium One.
Closing of the subscription agreement is subject to the receipt of certain
regulatory approvals, including Toronto Stock Exchange approval, Australian
Foreign Investment Review Board approval and Republic of Kazakhstan Ministry of
Energy and Mineral Resources approval, and to other usual and customary closing
conditions. Closing is expected to occur not later than March 31, 2009.
Jean Nortier, President and Chief Executive Officer of Uranium One commented:
"Uranium One is very pleased to partner with such highly respected leaders in
the global nuclear industry. We will benefit from the consortium`s knowledge and
expertise in the nuclear industry, from its high level relationships in
Kazakhstan and from its significant financial resources. The proceeds from the
private placement, combined with Uranium One`s consolidated cash balance of
approximately US$185 million at the end of January, will result in a solid
balance sheet to fund our growth and development plans."
Overview of the Consortium Members
The Tokyo Electric Power Company, Incorporated
The Tokyo Electric Power Company, Incorporated ("TEPCO") is the largest electric
utility in Japan and provides power to the Tokyo Metropolitan Area. TEPCO has an
electricity generating capacity of over 62 GW, approximately 28% of which is
from nuclear power.
Toshiba Corporation
Toshiba is a diversified manufacturer of electric and electronic products and is
involved in a broad range of power systems businesses around the world. The
company has a 67% ownership interest in Westinghouse Electric Co. LLC, whose
technology today provides the technological basis for approximately half of the
world`s operating nuclear power plants. The Toshiba Group has industry-leading
capabilities in both boiling water reactor (BWR) and pressurized water reactor
(PWR) nuclear power plants.
The Japan Bank for International Cooperation
The Japan Bank for International Cooperation is the international arm of the
Japan Finance Corporation. JBIC contributes to the sound development of the
Japanese and international economy in the three fields of: (i) promoting
overseas development and acquisition of strategically important natural
resources to Japan; (ii) maintaining and improving the international
competitiveness of Japanese industries; and (iii) responding to disruptions in
the financial order of the international economy.
Advisors
BMO Capital Markets acted as financial advisors to Uranium One, Fasken Martineau
DuMoulin LLP acted as legal advisor and Davis LLP acted as Canadian co-counsel.
Conference Call
Uranium One will be hosting a conference call and webcast for investors and
analysts on February 10, 2009 at 10:00 am (Eastern Time) to discuss today`s
announcement. Participants may join the call by dialling toll free 1-800-731-
6941 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 1:00 pm today and can be accessed by dialling
toll free 1-877-289-8525 or 1-416-640-1917 for local calls or calls from outside
Canada and the United States. The pass code for the replay is 21297672.
About Uranium One
Uranium One is one of the world`s largest publicly traded uranium producers,
with a globally diversified portfolio of assets located in Kazakhstan, the
United States, South Africa and Australia.
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, changes in market conditions, the actual results of
current exploration activities, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined, project cost overruns or
unanticipated costs or expenses, 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,
exchange rate and uranium price fluctuations, delays in obtaining government
approvals or financing or in completion of development or construction
activities, changes in, and the effect of government policy, risks relating to
the timing and completion of the transactions described in this press release,
the potential benefits thereof, risks relating to the benefits derived by the
Corporation from the strategic relationship described in this press release,
risks relating to the integration of acquisitions, to international operations,
to the price of uranium 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.
February 10, 2009
Date: 10/02/2009 09:30:02 Produced by the JSE SENS Department.
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