| Fri 1 Dec 2006, 8:54 | | sxr Uranium One Inc - Uranium One Announces C$135 |
|
SXR
SXR
sxr Uranium One Inc - Uranium One Announces C$135 Million
Convertible Debenture Offering
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
Not for distribution to U.S. news wire services or dissemination in the
United States.
December 1, 2006
Uranium One Announces C$135 Million Convertible Debenture Offering
Toronto, Ontario and Johannesburg, South Africa - sxr Uranium One Inc.
("Uranium One") announces that it has entered into an agreement to sell to
a syndicate of underwriters led by BMO Capital Markets on a bought deal
basis C$135 million aggregate principal amount of 4.25% convertible senior
debentures due December 31, 2011 (the "Debentures"). The Debentures will
bear interest at a rate of 4.25% per annum payable semi-annually, and will
be convertible at the option of the holder into common shares of Uranium
One at a conversion rate of 50 common shares per $1,000 principal amount of
Debentures, which is equal to a conversion price of C$20.00 per common
share. Uranium One has granted the Underwriters an over-allotment option
to purchase additional Debentures representing 15% of the purchased
Debentures at the same price, exercisable by the Underwriters for a period
of 30 days from Closing. Closing is expected on or about December 20,
2006.
Proceeds from the offering will be utilized to fund the development and
operation of Dominion and for general corporate purposes. In light of the
debenture offering, which is on terms which provide the Corporation with
greater flexibility than those currently available in the project finance
market, the Corporation will not be proceeding with the proposed Dominion
project finance facility for Phase I and Phase II.
The securities offered have not been 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. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be
unlawful.
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: +1 416 350 3657 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.
To receive the Corporation"s news releases by email, please register on
Uranium One"s website - www.uranium1.com.
Date: 01/12/2006 08:54:31 AM Produced by the JSE SENS Department
