| Mon 16 Nov 2009, 8:50 | | UUU - Uranium One Inc - Uranium One Receives Kazakh MEMR Approval to Acquire |
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UUU - Uranium One Inc - Uranium One Receives Kazakh MEMR Approval to Acquire
50% of the Karatau Uranium Mine
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
November 15, 2009
Uranium One Receives Kazakh MEMR Approval to Acquire 50% of the Karatau
Uranium Mine
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
today announced that the Kazakh Ministry of Energy and Mineral Resources
("MEMR") has approved the Company`s purchase from JSC Atomredmetzoloto
("ARMZ") of a 50% joint venture interest in the Karatau Uranium Mine. The
approval also includes a waiver of the pre-emptive right of the Kazakh State
under the Subsoil Use Law of Kazakhstan.
Uranium One expects to close the acquisition on or about December 15, 2009,
subject to approvals from the Kazakh Anti-Monopoly Commission and the
Australian Foreign Investment Review Board, which are expected to be received
in due course, and to the satisfaction of usual and customary closing
conditions.
As previously announced, the purchase price will be paid by way of the
issuance of 117 million common shares of Uranium One and a cash payment of
$90 million (or equivalent promissory note due within one year of closing).
The purchase agreement also provides for a contingent payment to ARMZ of up
to $60 million, payable in three equal tranches over the period between 2010
and 2012 subject to certain post-closing tax-related adjustments. A long-
term offtake agreement and framework agreement previously agreed by the
parties will become effective upon closing of the purchase agreement.
Uranium One has appointed Vadim Zhivov, Director General of ARMZ, to its
board of directors effective on closing and subject to regulatory approval.
Uranium One`s share of production from Karatau in 2010 is expected to be 2.3
million pounds of U3O8 at an average cash cost of approximately US$14 per
pound sold. At full production levels, Uranium One`s share of production
from Karatau is expected to be 2.6 million pounds per year. It is expected
that the annualized rate of production from Karatau will reach this level
during 2010.
Japan Consortium Private Placement
The Company`s application to MEMR for the approval and waiver required to
complete the private placement to a special purpose corporation formed by The
Tokyo Electric Power Company, Toshiba Corporation and The Japan Bank for
International Cooperation remains pending. As previously announced, that
transaction provides for the issuance of 117 million common shares of Uranium
One for gross proceeds of approximately C$270 million, as well as a long-term
offtake agreement and strategic relationship agreement.
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
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.
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, 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: 16/11/2009 08:50:01 Produced by the JSE SENS Department.
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