| Thu 18 Feb 2010, 14:50 | | UUU - Uranium One Announces C$250 Million Bought Deal Financing of Convertible |
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UUU - Uranium One Announces C$250 Million Bought Deal Financing of Convertible
Unsecured Subordinated Debentures
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
February 18, 2010
Uranium One Announces C$250 Million Bought Deal Financing of Convertible
Unsecured Subordinated Debentures
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
("Uranium One" or the "Company") today announced that it has entered into an
agreement for a bought deal financing with a syndicate of underwriters, led by
GMP Securities L.P. and including Canaccord Financial Ltd., BMO Capital
Markets, CIBC World Markets Inc., RBC Capital Markets and Paradigm Capital
Inc. (collectively, the "Underwriters") for C$250,000,000 aggregate principal
amount of convertible unsecured subordinated debentures (the "Convertible
Debentures") together with an over-allotment option of up to C$37,500,000
exercisable at any time up to the closing.
Highlights
- March 12, 2015 maturity
- Interest rate of 5.0% per annum, payable semi-annually, from the date of
receipt of all necessary Kazakh approvals for the conversion of the
Convertible Debentures (the "Approval Date")
- Interest rate of 7.5% per annum, payable semi-annually, from the date of
issue to the Approval Date
- Conversion price of C$4.00 per common share, representing a premium of
approximately 25.8% based on a reference price of C$3.18 (closing price
on February 17, 2010)
The offering is scheduled to close on or about March 12, 2010, and is subject
to the satisfaction of customary closing conditions, including approval of the
Toronto Stock Exchange and the securities regulatory authorities.
The Company intends to use the net proceeds for potential acquisitions,
working capital, general corporate purposes and to finance its operations and
development projects.
The Convertible Debentures will mature on March 12, 2015. From and after the
Approval Date, the Convertible Debentures will bear a rate of interest at 5.0%
per annum, payable semi-annually. Prior to the Approval Date, the Convertible
Debentures will bear an interest rate of 7.5% per annum, payable semi-annually
from the date of issue.
After the Approval Date, the Convertible Debentures will be convertible, at
the option of the holder, into common shares of the Company at a conversion
rate of 250 common shares per C$1,000 principal amount of Convertible
Debentures, which is equal to a conversion price of C$4.00 per common share.
The Convertible Debentures will not be redeemable.
The Convertible Debentures will be direct, unsecured obligations of the
Company, subordinated to the Company`s existing credit facility and to the
Company`s outstanding 4.25% Convertible Debentures due 2011, and ranking
equally with all other unsecured indebtedness of the Company.
A preliminary short form prospectus will be filed with the securities
regulators in each of the Provinces of Canada, except Quebec, pursuant to
National Instrument 44-101 Short Form Prospectus Distributions. The
securities offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of such Act. This press release does not constitute
an offer to sell or the solicitation of an offer to buy the securities in any
jurisdiction.
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
Sponsor
Nedbank Capital
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 strategic relationships, 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: 18/02/2010 14:50:02 Produced by the JSE SENS Department.
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