Littleton, Colorado (PR Newswire - January 27, 2016) Ur-Energy Inc. (NYSE MKT:URG, TSX:URE) (the 'Company' or 'Ur-Energy') is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Cantor Fitzgerald Canada Corporation and including Raymond James Ltd. and Dundee Securities Ltd. (the 'Underwriters'), which have agreed to purchase, on a bought-deal basis, 12,000,000common shares of Ur-Energy at a purchase price of US$0.50 per common share, for aggregate gross proceeds to the Company in the amount of US$6 million. In addition, Ur-Energy has agreed to grant the Underwriters an over-allotment option exercisable at any time, in whole or in part, for a period of 30 days following the closing of the offering, to purchase up to 1,800,000additional common shares at the issue price for gross proceeds of up to US$900,000.
Ur-Energy plans to use the net proceeds of the offering to advance the operations and development of the Lost Creek Project including wellfield construction and development as identified in the recently-completed Preliminary Economic Assessment for the Lost Creek Property, for payment of ongoing debt service obligations, and for general corporate purposes.
Jeff Klenda, the Executive Director of the Company, is expected to purchase 1,000,000 common shares under the Offering for gross proceeds of US$500,000. Mr. Klenda's participation in the Offering will constitute a 'related party transaction' as defined in Multilateral Instrument 61-101 respecting Protection of Minority Security Holders in Special Transactions ('MI 61-101'). The Offering will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities issued to insiders nor the consideration for such securities by insiders exceed 25% of the Company's market capitalization.
The common shares to be issued under the offering will be offered by way of a short form prospectus in all provinces in Canada, other than Quebec, and will be offered in the United States pursuant to a prospectus supplement to the Company's shelf registration statement filed with the Securities and Exchange Commission (the 'SEC'). This news release will not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The offering is scheduled to close on or about February 17, 2016 and is subject to satisfaction of certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange, NYSE MKT LLC and the applicable Canadian and U.S. securities regulatory authorities. Ur-Energy has applied to list the common shares on the TSX and will also apply to list the common shares on the NYSE MKT.
A copy of the U.S. prospectus supplement and accompanying base prospectus relating to the offering will be available from the SEC website at www.sec.gov and a copy of the Canadian preliminary and final short form prospectuses for the offering of the common shares in Canada will be available on SEDAR at www.sedar.com. Alternatively, once filed, copies of the U.S. prospectus supplement can be obtained by contacting Cantor Fitzgerald & Co., attention: Equity Capital Markets, 110 East 59th Street, New York, New York 10022, telephone: 212-829-7122 and copies of the Canadian preliminary and final short form prospectus may also be obtained by contacting the Company at 866-981-4588.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. The Lost Creek processing facility has a two million pounds per year nameplate design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. The Company has begun to submit applications for permits and licenses to operate Shirley Basin. Ur-Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uranium mineral properties in the United States. Shares of Ur-Energy trade on the NYSE MKT under the symbol 'URG' and on the Toronto Stock Exchange under the symbol 'URE.' Ur-Energy's corporate office is located in Littleton, Colorado; its registered office is in Ottawa, Ontario. Ur-Energy's website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeff Klenda
866-981-4588
[email protected]
Cautionary Note Regarding Forward-Looking Information: This release may contain 'forward-looking statements' within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., the anticipated size and closing date of the proposed offering and the use of proceeds from the offering) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.