Uranium Energy Corp to Purchase South Texas Mining Venture L.L.P. from
Uranium One and Everest Exploration
Acquisition includes the Fully Licensed Hobson ISR Processing Facility, the Advanced La Palangana ISR Project and a Portfolio of Exploration Properties in South Texas NYSE Amex Equities Exchange Symbol - UEC
The Company has entered into a Securities Purchase Agreement (the "Agreement") with URN to acquire all of its 99% interest in STMV (the "Acquisition"). Under the terms of the Agreement the Company agreed to issue 2,500,000 shares of common stock of the Company to make the Acquisition. The closing of the Acquisition is subject to a number of conditions including, among other things, the receipt by both parties of certain consents and releases at closing.
The Company has also entered into an agreement in principle (the "Agreement in Principle") with Everest to purchase substantially all of the assets of Everest, including its 1% interest in STMV. To make the acquisition, the Company will pay 200,000 shares of common stock of the Company and a cash payment of
The assets of STMV include the fully licensed and permitted Hobson ISR Processing Plant ("Hobson"), the La Palangana Uranium Project ("Palangana"), which is at an advanced stage of permitting, and a portfolio of exploration-stage properties located in South Texas. The Hobson facility is expected to form the basis of a new regional operating strategy for the Company's projects in South Texas. The Company anticipates that its Goliad and Nichols, and, after final closing, Palangana projects will now become satellite ISR operations, with loaded resins being transported to Hobson for further processing into dried U(3)O(8) (commonly known as yellowcake).
As a result of the acquisition of STMV, the Company's Texas land position will now include five additional properties, all with recognized uranium mineralization, and which lie within approximately 100 miles of the licensed Hobson facility. The STMV acquisition will also include significant data files that document decades of South Texas-focused uranium exploration and mining.
Amir Adnani, President and CEO of the Company, stated, "The purchase of STMV is consistent with the Company's objective of growth through acquisitions that can add significant value for shareholders. Texas is America's energy capital, and the state with a unique streamlined permitting framework for uranium mining. Texas has four operating nuclear power plants and six additional facilities are under consideration. Concurrently, the South Texas Uranium Belt holds significant known resources that are amenable to low-cost in-situ recovery. The Company is acting to build a base for long-term growth here. By acquiring existing, licensed production facilities, we intend to shorten the runway to initial low-cost production. The addition of new resources and properties to our existing Goliad and Nichols projects provides the Company with a strong and diversified pipeline of advanced, development and exploration-stage properties for expanding production for many years."
Overview of the Hobson Processing Facility and the Palangana Project
The Hobson facility is located about 100 miles northwest of Corpus Christi in Karnes County, Texas. Hobson was originally licensed and constructed in 1978, and was subsequently totally refurbished and expanded to a drying and packaging capacity of 1,000,000 pounds of U(3)O(8) per year in Q3 2008. Hobson's capacity can easily be doubled with the installation of a second and larger vacuum dryer.
The facility at Hobson is designed to process uranium-loaded resins from satellite facilities to a final product commonly known as yellowcake or U(3)O(8). By utilizing the Hobson facility as a central processing site, the Company's near-term plan is to have Goliad, and potentially Nichols, and, after final closing, Palangana, ISR production processed at Hobson rather than to construct a new processing plant at Goliad. The Company's Goliad and Nichols projects are 40 miles east and 5 miles southwest of Hobson, respectively.
Texas uranium mining was first established in the late 1950s in Karnes County where Hobson is situated, and the Karnes County Commissioners have recently passed resolutions in support of uranium mining. Additionally, the Duval County Commissioners, in late 2006, similarly adopted a pro-uranium mining resolution. The Palangana Project is located in Duval County.
The Palangana project is a prior-producing in-situ recovery (ISR) project located in the South Texas uranium belt. The 2,500-hectare (6,200-acre) property is located approximately 100 miles south of the Hobson facility. Over 4,000 historic exploration, development and production holes were drilled at the project by Union Carbide Corp ("UCC"), Chevron, and Everest Exploration Inc. UCC produced uranium at the project in the mid to late 1970's with ISR technology.
- a Final Mine Permit; - a Final Draft Production Area-1 Authorization; - a Permit by Rule (an Air Exemption permit); - two Deep Disposal Well Final Permits; - an existing Aquifer Exemption from previous mining endeavors is still current and active; and - a Draft Radioactive Material License has been prepared by the TCEQ and it is expected to be finalized as an operating license very soon.
About Uranium Energy Corp.
Uranium Energy Corp. (NYSE-AMEX: UEC) is a U.S.-based exploration and development company with the objective of near-term uranium production in the U.S. The Company's Goliad ISR Uranium Project in South Texas is in the final stages of mine permitting for production, and was recently issued a Final Draft Mine Permit and a Final Draft Production Authorization for Production Area 1. The Company's operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining. The company is well financed to execute on its key programs.
Stock Exchange Information: NYSE AMEX: UEC Frankfurt Stock Exchange Symbol: U6Z WKN: AØJDRR ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable
Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the
For further information: Contact North America: Investor Relations, Uranium Energy Corp.: Toll Free: (866) 748-1030, Fax: (512) 535-0832, E-mail: [email protected]
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