| Mon 29 Nov 2010, 7:54 | | UUU - Uranium One Completes Initial Closing of ARMZ Transaction |
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UUU - Uranium One Completes Initial Closing of ARMZ Transaction
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
November 29, 2010
Uranium One Completes Initial Closing of ARMZ Transaction
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
("Uranium One") is pleased to announce that it has completed the initial
closing of its transaction with JSC Atomredmetzoloto ("ARMZ"), comprising the
issuance of 178,127,165 new common shares of Uranium One to ARMZ in return for
US$610 million in cash. ARMZ currently holds 314,090,765 common shares
representing 40.85% of the outstanding common shares.
As previously announced on June 8, 2010, Uranium One entered into a definitive
purchase and subscription agreement with ARMZ under which Uranium One would
acquire ARMZ`s 50% interest in the Akbastau Uranium Mine ("Akbastau") and its
49.67% interest in the Zarechnoye Uranium Mine ("Zarechnoye") and ARMZ would
also contribute US$610 million in cash to Uranium One in return for 356
million new common shares of Uranium One.
The second closing, comprising the acquisition of ARMZ`s interests in the
Akbastau and Zarechnoye mines in return for an additional 178,127,164 new
common shares of Uranium One, is expected to be completed before the end of
this year. Following completion of the second closing, ARMZ will hold
492,217,929 of the then issued and outstanding shares of Uranium One, which
will represent approximately 51% of the then issued shares.
Special Dividend Declaration and Record Date
Pursuant to the definitive purchase and subscription agreement, the board of
directors of Uranium One has declared a special dividend of US$1.06 payable on
December 20, 2010, to all shareholders of record (other than ARMZ) at the
close of business on December 10, 2010.
South African Shareholders should note the following:
- For purposes of the JSE Limited and in compliance with the requirements
of STRATE, the following dates are applicable:
- Last day to trade cum the special dividend: Friday, December 3,
2010
- Trading ex special dividend commences: Monday, December 6 2010
- Record date: Friday, December 10, 2010
- Payment date: Monday, December 20, 2010
- Share certificates may not be dematerialised or rematerialised
between Monday, December 6, 2010 and Friday, December 10, 2010, both
days inclusive.
Strengthening of Management Team
On the completion of the second closing, Vadim Zhivov, Director General of
ARMZ and a director of Uranium One, will be appointed President of Uranium One
while Jean Nortier will continue as Chief Executive Officer of the Company.
Mr. Peter Bowie will also be appointed to the board of directors on completion
of the second closing. Mr. Bowie served as the Chief Executive Officer of
Deloitte China from 2003 to 2008 and was previously Chairman of Deloitte
Canada.
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, 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, the completion of the
transactions described in this press release, the future steady state
production and cash costs of Uranium One, 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 and the realization of synergies relating
thereto, 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, 2009 and Management
Information Circular dated August 3, 2010, each of 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.
Sponsor
Nedbank Capital
Date: 29/11/2010 07:54:01 Produced by the JSE SENS Department.
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