| Mon 8 Jan 2007, 15:58 | | SXR - sxr Uranium One Inc - News Release |
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SXR
SXR
SXR - sxr Uranium One Inc - News Release
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
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
January 8, 2007 Toronto, Ontario
Sweetwater Uranium Assets Withdrawn From Sale by Rio Tinto;
Exclusivity Agreement Relating to Shootaring Canyon Uranium Assets
Extended
Toronto, Ontario and Johannesburg, South Africa - sxr Uranium One Inc.
("Uranium One") today announced that Rio Tinto Energy America, Inc. has
decided to withdraw the Sweetwater uranium mill and related properties
from sale in order to re-evaluate whether these should be retained and
developed.
Uranium One has been advised that Rio Tinto`s decision has been prompted
by significant and unexpected changes in the world-wide market for
uranium since the July 7, 2006 exclusivity agreement between the parties
relating to these assets. Rio Tinto has agreed that, if it subsequently
decides to re-offer these assets for sale in the next two years, it will
invite Uranium One to re-submit a bid. Rio Tinto has agreed to acquire
from Uranium One copies of the third party technical reports prepared for
Uranium One as part of its due diligence investigations.
Concurrently, in a separate development, Uranium One has exercised its
right to extend by three months the exclusivity period under the July 10,
2006 exclusivity agreement between Uranium One, U.S. Energy Corp. and
Crested Corp. relating to the acquisition of the Shootaring Canyon
uranium mill and associated uranium properties in the western United
States.
Said Neal Froneman, Uranium One CEO: "We are naturally very disappointed
with Rio Tinto`s decision to withdraw the Sweetwater assets from sale,
particularly at this stage in our negotiations. However, our
negotiations with U.S. Energy Corp. with respect to the Shootaring Canyon
assets are progressing well and we look forward to finalizing definitive
acquisition documentation for these assets during the first quarter of
2007. In the meantime, we will continue to seek out growth opportunities
in the United States in accordance with the continuing strategic
importance to Uranium One of the U.S. market."
The Sweetwater assets were initially offered for sale by Rio Tinto in a
competitive bidding process commencing in 2005. On July 7, 2006, after
selecting Uranium One as the preferred bidder, Rio Tinto entered into an
exclusivity agreement under which it granted to Uranium One the exclusive
right to negotiate a definitive acquisition agreement consistent with the
terms of Uranium One`s bid and to carry out due diligence for a period of
180 days.
The Shootaring Canyon uranium assets are the subject of a separate
exclusivity agreement dated July 10, 2006. As a result of the extension,
the exclusive rights granted to Uranium One to negotiate and finalize the
terms of definitive acquisition documentation with U.S. Energy Corp. and
Crested Corp. have been extended to April 6, 2007. The purchase
transaction remains subject, among other things, to the satisfactory
completion of Uranium One`s due diligence investigations, to Uranium One
board approval and to the receipt of all required governmental and
regulatory approvals.
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 December 15, 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: 08/01/2007 15:58:26 Produced by the JSE SENS Department.
