Uranium One Revises C$270 Million Financing with Japanese Consortium; Proceeds to be Received by January 15, 2010
VANCOUVER and JOHANNESBURG, South Africa, Dec. 29 /CNW/ - Uranium One Inc. today announced that the Company and its three Japanese partners (a consortium comprising The Tokyo Electric Power Company, Inc., Toshiba Corporation and The Japan Bank for International Cooperation) have executed documentation revising the February 9, 2009 private placement between the Company and Japan Uranium Management Inc. ("JUMI"), a company owned by the consortium, to a debenture financing.
All regulatory, third party and other approvals required to complete the debenture financing have been received. Closing is expected to occur on or about January 15, 2010, at which time the corporation will receive aggregate proceeds of C$269,100,000.
The February 9, 2009 private placement contemplated the issuance to JUMI of 117,000,000 common shares of Uranium One at an issue price of C$2.30 per share, for aggregate gross proceeds of C$269,100,000.
Under the revised terms of the private placement, Uranium One will issue to JUMI C$269,100,000 aggregate principal amount of 3% unsecured convertible debentures maturing ten years from the date of issue. The debentures will automatically convert into 117,000,000 Uranium One common shares on receipt of required Kazakh regulatory approval, which is expected during 2010. If such approval is not received, the holder may, on 12 months' notice, cause the debentures to be redeemed at par plus accrued and unpaid interest. Such redemption may not occur before the second anniversary of the closing in January 2012.
The previously announced long-term offtake and strategic relationship agreements with the JUMI consortium will become effective on closing. Under the offtake agreement, the consortium has an option to purchase, on industry-standard terms, up to 20% of Uranium One's available attributable production from assets in respect of which it has the marketing rights.
The strategic relationship agreement provides the JUMI consortium on closing of the transaction with the right to appoint two directors to the Uranium One board and a right of first opportunity to invest in any uranium mining asset or project which Uranium One may in its discretion make available to third parties. The agreement also contains a standstill provision under which the consortium has agreed, subject to certain exceptions, not to acquire without Uranium One's prior approval more than 19.95% of Uranium One's issued common shares.
About Uranium One
Uranium One is one of the world's largest publicly traded uranium producers, with a globally diversified portfolio of assets located in Kazakhstan, the United States, South Africa and Australia.
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-looking statements: This press release contains certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the price of uranium, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words 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 involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Uranium One to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, changes in market conditions, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, project cost overruns or unanticipated costs or expenses, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the mining industry, exchange rate and uranium price fluctuations, delays in obtaining government approvals or financing or in completion of development or construction activities, changes in, and the effect of government policy, risks relating to the timing and completion of the transactions described in this press release, the potential benefits thereof, risks relating to the benefits derived by the Corporation from the strategic relationship described in this press release, risks relating to the integration of acquisitions, to international operations, to the price of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Annual Information Form for the year ended December 31, 2008, which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although Uranium One has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
For further information about Uranium One, please visit www.uranium1.com.
%SEDAR: 00005203E For further information: Jean Nortier, Chief Executive Officer, Tel: (778) 384-6217; Chris Sattler, Executive Vice President, Corporate Development and Investor Relations, Tel: (416) 350-3657
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