NOT FOR DISTRIBUTION to UNITED STATES
newswire services or dissemination in the United States
U3O8 Corp. completes C$20.5 million private placement
TORONTO, Ontario ? February 15, 2011 ? U3O8 Corp. (TSX Venture: UWE) (U3O8 Corp. or ?the Company?)
is pleased to announce that it has completed its previously announced private
placement (the ?Offering?) of 24,150,000 Units (the
?Units?) at a price of C$0.85 per Unit for aggregate proceeds to the Company of
C$20,527,500, including the exercise of the full underwriters? option of
C$2,677,500.
Each Unit consists
of one common share in the capital of the Company (each a
?Common Share?) and one-half of one common share purchase warrant (each
whole common share purchase warrant, a ?Warrant?). Each Warrant entitles
the holder thereof to purchase one Common Share (a ?Warrant
Share?) at a price of C$1.00 per Warrant Share (the ?Exercise Price?) for a
period of 2 years following the closing of the Offering. The Offering was
conducted by a syndicate of underwriters led by GMP Securities L.P. and
included Dundee Securities Corporation, PowerOne
Capital Markets Ltd. and Haywood Securities Inc. (collectively, the
?Underwriters?).
In consideration for their services, the Company paid
a cash commission to the Underwriters equal to 6.0% of the gross proceeds from
the sale of the Units, except on the Units sold to certain persons on the
president's list prepared by the Company for which the commission paid was
equal to 3.0%. As additional compensation, the Company issued to the
Underwriters broker warrants which entitle the Underwriters to subscribe for
that number of Units equal to 6.0% of the total number of Units sold pursuant
to the Offering, except for the Units subscribed for by certain persons on the
president's list for which the Company issued broker warrants entitling the
Underwriters to subscribe for that number of Units equal to 3.0% of the total
number of Units sold pursuant to the Offering. Each broker warrant is
exercisable to acquire one Unit of the Company at a price equal to $0.85 for a
period of 24 months after the closing date.
The net proceeds
are intended to be used by U3O8 Corp. to advance the exploration and
development of its projects in Guyana, Colombia and Argentina and for general
working capital purposes.
The securities
issued under the Offering will be subject to a hold period expiring June 16,
2011 in accordance with applicable securities laws and TSX Venture Exchange
policies.
?With a strong balance
sheet, U3O8 Corp. can continue to focus on aggressively advancing its
exploration programs in Colombia, Guyana and Argentina, which are aimed at
substantially increasing its resource portfolio in 2011,? said
Dr. Richard Spencer, U3O8 Corp?s President and CEO.
This news release
does not constitute an offer to sell or solicitation of an offer to sell any of
the securities in the United States or to a ?U.S.
person? (?U.S. Person?) (as
such term is defined in Regulation S promulgated under the United States
Securities Act of 1933, as amended (the ?U.S. Securities Act?)). The securities
have not been and will not be registered under the U.S. Securities Act or any
state securities laws and may not be offered or sold within the United States
or to a U.S. Person unless registered under the U..S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.
About
U3O8 Corp.
U3O8 Corp. is a Toronto-based
exploration company focused on exploration of uranium and associated
commodities in South America. The Company has one of the most advanced
portfolios of uranium projects in the region comprising NI 43-101 compliant
resources in Guyana, significant historic resources in Colombia and near
resource potential in Argentina.
Additional information on U3O8 Corp.,
each material project and technical reports are available on the company’s
web site at www.u3o8corp.com and on SEDAR at www.sedar.com.
For information, please contact:
U3O8 Corp. (416) 868-1491
Nancy
Chan-Palmateer
Richard Spencer
Vice President, Investor
Relations
President & CEO
nancy@u3o8corp.com
richard@u3o8corp.com
Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Forward-Looking
Statements
This news release contains ?forward-looking
information? within the meaning of applicable Canadian
securities legislation, which is also referred to as ?forward-looking
statements.? Wherever possible, words expressions or statements such as ?plans,? ?intends,? ?expects,? ?continues,? and similar expressions that certain actions, events or
results ?may,? ?could,? ?would,? ?might? or ?will? be taken, occur or be achieved, have been used to identify
forward-looking information. In particular, this news release describes
future events and conditions that are subject to numerous risks and
uncertainties, certain of which are beyond the control of U3O8 Corp., including,
but not limited to, the impact of general economic conditions, industry
conditions, volatility of financial markets and commodity prices, risks
associated with the uncertainty of exploration results and estimates and that
the resource potential will be achieved on exploration projects, currency
fluctuations, dependence upon regulatory approvals, and the uncertainty of
obtaining additional financing and exploration risk. There is no assurance that
the Company?s exploration
and development of its projects in Guyana, Colombia and Argentina will add to
U3O8 Corp?s resource base in the short-term, or at
all. Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may prove
to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements.