| Tue 11 Aug 2009, 11:21 | | UUU - Uranium one enters into definitive agreement to acquire Christensen |
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UUU - Uranium one enters into definitive agreement to acquire Christensen
Ranch and Irigaray in Wyoming
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
August 10, 2009
Uranium One Enters into Definitive Agreement to Acquire Christensen Ranch and
Irigaray in Wyoming
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
("Uranium One") announced today that it has entered into a definitive agreement
to acquire 100% of the MALCO Joint Venture ("MALCO") from wholly-owned
subsidiaries of AREVA and EDF for US$ 35 million in cash.
The assets of MALCO include the licensed and permitted Irigaray ISR central
processing plant, the Christensen Ranch satellite ISR facility and associated
U3O8 resources located in the Powder River Basin of Wyoming.
The Irigaray and Christensen Ranch facilities are expected to form the basis of
a new operating plan for the Company`s projects in Wyoming. Uranium One
anticipates that its Moore Ranch project will now become a satellite ISR
operation, with loaded resins being transported to Irigaray for further
processing into dried U3O8. Uranium One`s additional projects in the Powder
River Basin, including Ludeman, Peterson, Allemand-Ross and Barge could also be
developed as satellite operations with final processing through Irigaray.
Jean Nortier, President and Chief Executive Officer of Uranium One said:
"The acquisition of the Irigaray and Christensen Ranch ISR facilities is an
excellent complement to our current Wyoming uranium resource portfolio. By
acquiring existing, licensed production facilities, we will reduce the
permitting and construction risk associated with developing our own central
production plant. Now, with a clear path to commencing uranium production in
the U.S., we believe that the underlying value of our Wyoming asset base will
become apparent."
Closing of the transaction is expected to take place during H1 2010 and is
subject to regulatory approvals including U.S. Nuclear Regulatory Commission
("NRC"), Wyoming Department of Environmental Quality ("WDEQ"), Texas Commission
on Environmental Quality and the Committee on Foreign Investment in the United
States. Closing is also subject to a financing condition which the Company
expects will be satisfied by the completion of the previously announced private
placement of 117,000,000 common shares of Uranium One to a consortium of
Japanese companies for proceeds of approximately C$ 270 million.
Overview of Irigaray and Christensen Ranch
Operations at Christensen Ranch commenced in 1989 and production continued until
2000. Including uranium recovered from restoration activities, a total of 4.7
million pounds U3O8 was produced at Christensen Ranch and Irigaray.
All major permits and licenses are in place for the re-start of operations at
Christensen Ranch and Irigaray. These include the NRC Source Material License,
the WDEQ Permit to Mine, and permits for disposal well operations. The NRC
license for the Irigaray central processing plant allows a maximum of 2.5
million pounds of dried U3O8 production per year and an application for a 10
year renewal of the license was submitted in early 2008. Operations may be
carried on while the NRC approval is pending.
Upon closing of the transaction Uranium One plans to develop and mine the
resources at Christensen Ranch and Irigaray commencing with the continued
development of well fields at Christensen Ranch. Once in operation, uranium
laden resins from the Christensen Ranch satellite facility will be transported
for final processing at the Irigaray central processing plant. The Irigaray
central processing plant currently has the capacity to produce approximately 1.3
million pounds of dried U3O8 per year. Uranium One intends to expand the
processing capacity at Irigaray in line with the NRC license to approximately
2.5 million pounds U3O8 per year by incorporating a vacuum dryer that was
purchased for use at Moore Ranch. The excess capacity at Irigaray can be used to
process resins from other satellite operations in the Powder River Basin,
including Moore Ranch and other Uranium One properties.
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, Australia and South Africa.
For further information, please contact:
Jean Nortier
Chief Executive Officer
Tel: +1 604 601 5642
Chris Sattler
Executive 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.
Investors are advised to refer to independent technical reports containing
detailed information with respect to the material properties of Uranium One.
These technical reports are available under the profiles of Uranium One Inc.,
UrAsia Energy Ltd., and Energy Metals Corporation at www.sedar.com. 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.
Scientific and technical information contained herein has been reviewed on
behalf of Uranium One by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA,
Senior Vice President of Uranium One Inc., a Qualified Person for the purposes
of NI 43-101.
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 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, 2008, 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 www.uranium1.com.
Date: 11/08/2009 11:21:25 Produced by the JSE SENS Department.
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