| Thu 21 Dec 2006, 9:31 | | SXR - sxr Uranium One Inc - Uranium One Announces |
|
SXR
SXR
SXR - sxr Uranium One Inc - Uranium One Announces Completion of Public 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
December 21, 2006
Uranium One Announces Completion of Public Offering
Toronto, Ontario and Johannesburg, South Africa - sxr Uranium One Inc. ("Uranium
One") has completed the public offering of $155,250,000 aggregate principal
amount of convertible unsecured subordinated debentures due December 31, 2011
(the "Debentures"). The Debentures bear interest at a rate of 4.25% per annum
payable semi-annually, and are 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, subject to adjustment in certain circumstances. The entire
offering was sold to a syndicate of underwriters led by BMO Capital Markets on a
bought deal basis. The Debentures sold include the Debentures issued upon the
exercise, at closing, of the entire 15% over-allotment option granted by Uranium
One to the underwriters. Uranium One intends to use the net proceeds of the
offering to finance the construction of its Dominion uranium mine, exploration,
and general corporate purposes.
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 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% 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:
Jean Nortier Chris Sattler
Chief Financial Officer Vice President, Investor Relations
Tel: + 27 82 418 2241 Tel: + 1 416 350 3657
Cautionary Statements
This news release contains "forward-looking statements", within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and similar
Canadian legislation, concerning the business, operations and financial
performance and condition of Uranium One. Forward-looking statements include,
but are not limited to, the completion of the proposed offering; the use of
proceeds from the offering; the members of the syndicate for the offering; the
development potential of Uranium One`s properties; the future price of uranium
and gold; the estimation of mineral reserves and resources; the realization of
mineral reserve estimates; the timing and amount of estimated future production;
costs of production; capital expenditures; success of exploration activities;
permitting time lines and permitting, mining or processing issues; currency
exchange rate fluctuations; government regulation of mining operations;
environmental risks; unanticipated reclamation expenses; title disputes or
claims; and limitations on insurance coverage. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology 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 are based on the opinions
and estimates of management as of the date such statements are made, and they
are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
Uranium One to be materially different from those expressed or implied by such
forward looking statements, including but not limited to risks related to:
unexpected events during construction, expansion and start-up; variations in ore
grade, tonnes mined, crushed or milled; delay or failure to receive board or
government approvals; timing and availability of external financing on
acceptable terms; the businesses of Uranium One not being integrated
successfully or such integration proving more difficult, time consuming or
costly than expected; risks related to international operations; actual results
of current exploration activities; actual results of current reclamation
activities; conclusions of economic valuations; changes in project parameters as
plans continue to be refined; future prices of uranium and gold; possible
variations in ore reserves, 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 the completion of development or
construction activities, as well as those factors discussed in or referred to in
the current annual Management`s Discussion and Analysis and current Annual
Information Form of Uranium One filed with the securities regulatory authorities
in Canada and available at www.sedar.com. Although management of Uranium One
have attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements, 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 incorporated by reference herein, except
in accordance with applicable securities laws.
Date: 21/12/2006 09:31:32 Produced by the JSE SENS Department.
