| Wed 8 Jun 2011, 7:45 | | UUU - Uranium One Inc - Uranium One Becomes Operator at Mkuju River Project |
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UUU
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UUU - Uranium One Inc - Uranium One Becomes Operator at Mkuju River Project
in Tanzania
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
7 June 2011
Uranium One Becomes Operator at Mkuju River Project in Tanzania
Toronto, Canada and Johannesburg, South Africa - Uranium One Inc. ("Uranium
One") announced that its 51% shareholder, JSC Atomredmetzoloto, has today
completed the acquisition of Mantra Resources Ltd. ("Mantra"). Uranium One
also announced that it has now become operator of Mantra`s Mkuju River
Project in Tanzania pursuant to agreements entered into with ARMZ in
connection with today`s closing.
Operating Agreement
Uranium One will manage the development of the Mkuju River Project and other
Mantra exploration activities pursuant to an operating agreement entered into
on June 6, 2011 between Uranium One, ARMZ and Mantra.
Development of the Mkuju River Project is to be completed in accordance with
a revised feasibility study scheduled for completion in Q1 2012 and work
programs approved by Uranium One and ARMZ.
Loan Agreement
In accordance with a loan agreement between Uranium One and Mantra dated June
6, 2011, Uranium One has also agreed to provide a credit facility to fund the
development of the Mkuju River Project and other Mantra exploration
activities. The credit facility will be guaranteed by ARMZ.
Prior to completion of the revised feasibility study, work at Mkuju River
will be funded from Mantra`s existing cash balance and from cash flow from
Uranium One`s Kazakhstan operations.
Mkuju River Project
The Mkuju River Project is a large scale, uranium development project located
in southern Tanzania.
As previously announced, Uranium One has a call option to acquire Mantra from
ARMZ for consideration equal to ARMZ`s cost plus certain additional
expenditures, exercisable for a period of 12 months from today`s closing.
ARMZ also has a put option to sell Mantra to Uranium One for the same
consideration at the end of such 12 month period. The call option and the put
option may be extended to 24 months if Uranium One partially exercises that
option and acquires approximately 15% of Mantra for US $150 million before
January 31, 2012. The option to acquire the remaining 85% interest in Mantra
(or 100% if the option is not partially exercised) is subject to Uranium One
minority shareholder approval.
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:
Chris Sattler
Chief Executive Officer
Tel: + 1 647 788 8500
Anton Jivov
Manager, Corporate Development and Investor Relations
Tel: +1 647 788 8461
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, 2010 which is available on SEDAR at
www.sedar.com. 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: 08/06/2011 07:45:34 Produced by the JSE SENS Department.
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