UEX Corporation Announces
$3 Million Private Placement
UEX Corporation (TSX: UEX) ("UEX" or "the
Company"), is pleased to announce that it has agreed to complete a
non-brokered private placement of 3,260,869 flow-through common shares of UEX
(the "Flow-Through Shares") at a price of $0.92 per Flow-Through
Share for total gross proceeds to UEX of approximately $3,000,000 (the
"Private Placement"). The Private Placement is in addition to the $8
million bought deal short form prospectus financing announced by UEX on
February 17, 2012.
Cameco Corporation ("Cameco")
has a pre-emptive right under the provisions of the agreement dated October 23,
2001 among UEX, Cameco and Pioneer Metals Corporation
to purchase flow-through common shares from UEX on the same terms and
conditions as the Private Placement so as to maintain its current approximate
22.58% ownership interest in UEX. This right, if exercised, could result in the
issuance by UEX of up to 951,256 flow-through shares in addition to the Flow-Through
Shares to be issued under the Private Placement.
UEX has offered that Cameco may, in lieu, of
purchasing flow-through common shares, purchase up to 951,256 non-flow-through
common shares of UEX at a subscription price per share equal to the greater of:
(i) the closing price of the common shares on the
Toronto Stock Exchange ("TSX") on the last trading day before this
right is exercised, and (ii) $0.84, being the closing price on February 17,
2012, which is the last trading day before this offer was made to Cameco.
Closing of the Private Placement is anticipated to occur in March 2012 and is
subject to a number of conditions, including, without limitation, receipt of
all regulatory approvals including approval of the TSX.
About UEX
UEX is a Canadian uranium exploration and development
company actively involved in 18 uranium projects, including six that are 100%
owned and operated by UEX, one joint venture with AREVA Resources Canada Inc.
("AREVA") that is operated by UEX, as well as ten joint-ventured with
AREVA and one under option from JCU (Canada) Exploration Company, Limited,
which are operated by AREVA. The 18 projects, totaling 308,320 hectares
(761,875 acres), are located in the eastern, western and northern perimeters of
the Athabasca Basin, the world's richest uranium belt, which accounts for
approximately 18% of the global primary uranium production. UEX is currently
developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned
Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin,
and the Horseshoe, Raven and West Bear deposits located at its 100%-owned
Hidden Bay Project in the eastern Athabasca Basin.