| Thu 11 Jan 2007, 9:00 | | SXR - SXR Uranium One Inc - Uranium One announces |
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SXR
SXR
SXR - SXR Uranium One Inc - Uranium One announces further sales contracts 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
Uranium One Announces Further Sales Contracts for Dominion
Trading Symbol: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg Stock
Exchange)
TORONTO and JOHANNESBURG, South Africa, Jan. 11 /CNW/ - sxr Uranium One, Inc.
("Uranium One") is pleased to announce that it has agreed terms with a number
of western world utility customers for further sales contracts 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 four new contracts with a total
sale of 3,200,000 pounds of U3O8 from Dominion for delivery during the period
2008 and 2012, inclusive. Pricing will be market-related at the time of
delivery, with escalating floor price protection. The sales agreements, which
are subject to completion of definitive contractual documentation, were
facilitated by Nufcor International Limited.
Uranium One announced on November 19, 2006 that it had agreed terms with a
western world utility for an inaugural sales contract for the Dominion Uranium
Project of 1,500,000 pounds of U3O8 for delivery between 2008 and 2012,
inclusive.
The total contract position of 4,700,000 pounds of U3O8 from Dominion now
represents approximately 28% of estimated production over the same time period
according to the production profile contained in the Independent Technical
Report prepared by SRK Consulting, as amended and filed on SEDAR
(www.sedar.com) on October 26, 2006.
Commenting on today`s announcement, Neal Froneman, President and CEO of
Uranium One, said:
"I am delighted that we can announce further agreements for the supply of
uranium from Dominion bringing the forward sales of U3O8 for which we are
contracted to a total of 4,700,000 pounds. We will be commencing production at
Dominion in the first quarter of 2007, our initial output will be sold into
the spot market, and we are continuing to secure contracts which do not cap
the price at which we will be selling our uranium and contain floor price
protection. The company will therefore remain totally un-hedged and un-capped,
over a period when we expect further upside in the uranium market. In line
with our strategy, we are becoming a uranium producer at just the right time."
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.
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.
%SEDAR: 00005203E
For further information: Neal Froneman, Chief Executive Officer, Tel: + 27 11
482 3605; Chris Sattler, Vice President, Investor Relations, Tel: (416) 350-
3657
Date: 11/01/2007 09:00:04 Produced by the JSE SENS Department.
