| Fri 17 Nov 2006, 16:00 | | sxr Uranium One Inc - Uranium One Announces Inaugu |
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SXR
SXR
sxr Uranium One Inc - Uranium One Announces Inaugural Sales Contract
for Dominion
sxr Uranium One Inc
(Formerly Southern Cross Resources Inc.)
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR & ISIN: CA87112P1062
Share code on the TSX: SXR & ISIN: CA87112P1062
("Corporation")
sxr Uranium One Inc.
390 Bay Street, Suite 1610
Toronto, Ontario M5H 2Y2
Trading Symbol: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg
stock exchange)
NEWS RELEASE
November 17, 2006 Toronto, Ontario
Uranium One Announces Inaugural Sales Contract for Dominion
Toronto, Ontario and Johannesburg, South Africa - sxr Uranium One Inc.
("Uranium One") is pleased to announce that it has agreed terms with a
Western World utility customer for the inaugural sales contract from its
Dominion Uranium Project in South Africa. The Dominion Uranium Project is
scheduled to commence production in the first quarter of 2007.
The agreed terms provide for the sale of 1,500,000 pounds of U3O8 from
Dominion between 2008 and 2012 inclusive. There will be no caps on the
pricing which will be market-related at the time of delivery, with
escalating floor price protection. The agreement on terms, which is
subject to the completion of definitive contractual documentation, was
facilitated by Nufcor International Limited.
Commenting on today"s announcement, Neal Froneman, President and CEO of
Uranium One, said:
"I am pleased that we have reached agreement on the key terms for the
supply of our first uranium from Dominion. This agreement is an important
milestone in the development of the Company. It reflects industry
confidence in our imminent entry into the ranks of the uranium producers.
It also validates our financing strategy for the development of Dominion
resulting in the company being totally un-hedged and with all the benefits
of an ongoing exposure to a uranium price environment which continues to be
favourable."
About sxr Uranium One
sxr Uranium One Inc. is a Canadian uranium and gold resource company with a
primary listing on the Toronto Stock Exchange and a secondary listing on
the JSE Limited (the Johannesburg stock exchange). The Corporation owns the
Dominion Uranium Project in South Africa and the Honeymoon Uranium Project
in South Australia, and is actively pursuing growth opportunities in the
uranium sector in the western United States. The Corporation holds an
approximate 71.6% interest in Aflease Gold Limited, which owns the Modder
East Gold Project in South Africa. Through a joint venture with Pitchstone
Exploration Ltd., the Corporation is also engaged in uranium exploration
activities in the Athabasca Basin of Saskatchewan.
For further information, please contact:
Neal Froneman Chris Sattler
Chief Executive Officer Vice President, Investor Relations
Tel: + 27 11 482-3605 Tel: +1 416 350-3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
This News Release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
legislation. All statements other than statements of historical fact
included in this release including, without limitation, statements
regarding future plans and objectives of Uranium One and the timing of
commencement of construction activities, are forward-looking statements (or
forward-looking information) that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Important factors could cause actual
results to differ materially from Uranium One"s expectations. Such factors
include, among others, the actual results of exploration activities, actual
results of reclamation activities, the estimation or realization of mineral
reserves and resources, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing of
the development of new deposits, availability of capital required to place
Uranium One"s properties into production, conclusions of economic
evaluations, changes in project parameters as plans continue to be refined,
future prices of commodities, possible variations in ore grade or recovery
rates, failure of plant, equipment or processes to operate as anticipated,
accidents, labour disputes and other risks of the mining industry, delays
in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, Uranium One"s hedging
practices, currency fluctuations, title disputes or claims limitations on
insurance coverage, as well as those factors discussed under "Risk Factors"
in Uranium One"s Annual Information Form, Management"s Discussion and
Analysis for the third quarter of 2006 and Uranium One"s (final) short form
prospectus dated October 26, 2006 as filed with securities regulatory
authorities in Canada. Although Uranium One has attempted to identify
important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated or intended.
There can be no assurance that such 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 does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
Investors are cautioned not to assume that all or any part of the mineral
deposits in the measured and indicated resource categories will ever be
converted into reserves. In addition, "inferred resources" have a great
amount of uncertainty as to their existence and economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will be ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the
basis of feasibility or pre-feasibility studies or economic studies except
for preliminary assessments as defined under NI 43-101. Investors are
cautioned not to assume that all or any part of an inferred resource exists
or is economically or legally mineable.
To receive the Corporation"s news releases by email, please register on
Uranium One"s website - www.uranium1.com.
Date: 17/11/2006 04:00:06 PM Produced by the JSE SENS Department
