U3O8 Corp. Proposes One Million Dollar Non-Brokered Financing

TORONTO, Oct. 4, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the "Company") announces that it intends to proceed with a non-brokered private placement to raise up to one million Canadian Dollars ("C$) in gross proceeds through the sale of approximately 3 million units with each unit ("Unit") consisting of a share and a warrant. 

Terms of the Private Placement

The price of a Unit has been set at C$0.34.  Each Unit shall consist of:

• One share;
• A warrant that provides the subscriber with the right to purchase an additional share at a price of C$0.45 for a period of 2½ years (30 months) from the date of the financing;
• Number of Units being offered: 3,000,000;
• Potential gross proceeds: C$1,020,000.

The shares and warrants issued will have a hold period, during which they cannot be traded, for four months from the date of the closing of this financing. 

This financing is available to Accredited Investors as well as to existing shareholders through the Existing Shareholder Prospectus Exemption ("ESPE") that allows any U3O8 Corp. shareholder to purchase up to C$15,000 of the Company's stock per year, without needing to be an Accredited Investor. Since an Accredited Investor designation requires a net worth of C$1 million or an annual income of C$200,000 or other similar financial and institutional criteria, the ESPE opens the participation in the Company's financing, and the access to warrants, to a much broader spectrum of investors.  Additional information on the document that needs to be completed for subscription to the ESPE financing may be found on the Company's website, http://www.u3o8corp.com/investors/existing-shareholder-prospectus-exemption/.

Use of Proceeds

Funds raised from the financing will be used for pilot plant test work on the Laguna Salada uranium-vanadium deposit in Argentina, as well as for general administrative purposes.  The Preliminary Economic Assessment ("PEA") conducted on the Laguna Salada Deposit defined specific opportunities for lowering both operating and capital costs on the Project.  The planned work will test some alternative processes to those in the current flow sheet to confirm their superior efficiency.  In addition, the recognition of the role that vanadium redox batteries can play in cost-effective, industrial-scale electricity storage is starting to contribute to a supply shortage that has led to sharply higher vanadium prices.  Consequently, we plan to test ways of extracting more vanadium from the Laguna Salada Deposit.

Commission

Although the financing is non-brokered, any broker who introduces an investor to the financing will be paid a commission of 7% of the value of the client's investment and 7% in broker warrants priced at C$0.45 and valid for a period of two years from the date of closing of the financing.  Broker warrants are also subject to the four-month hold period.  

Technical Information

Cautionary Note: the PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment will be realized.

Dr. Richard Spencer, P.Geo., CGeol., President and CEO of U3O8 Corp. and a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada Deposit and the related PEA.

About U3O8 Corp.

U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America.  Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate.  The Company's mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in three deposits: 

• Laguna Salada Deposit, Argentina – a PEA shows this near surface, free-digging uranium - vanadium deposit has low production-cost potential;
• Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit; and
• Kurupung Deposit, Guyana – a uranium resource has been estimated in four veins within a uranium-zirconium vein system. Resources have been estimated on four veins, while consistent mineralization of the same type has been intersected in scout drilling of an additional six veins, while yet other veins require first-time exploration drilling.

Information on U3O8 Corp., its resources and technical reports are available at www.u3o8corp.com and on SEDAR at www.sedar.com.  Follow U3O8 Corp. on Facebook:  http://www.facebook.com/u3o8corp, Twitter:  http://www.twitter.com/u3o8corp and YouTube: http://www.youtube.com/u3o8corp.

Forward-Looking Statements
This news release includes certain "forward looking statements" related with the development plans, economic potential and growth targets of U3O8 Corp's projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana, (d) impact of the U- pgradeTM process on expected capital and operating expenditures, and (e) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) a joint venture will be formed with the provincial petroleum and mining company on the Argentina project, (iii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iv) economic, political and industry market conditions will be favourable, and (v) financial markets and the market for uranium  will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company's ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those  factors set out in the "Risk Factors" in our Annual Information Form available on SEDAR at www.sedar.com. 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. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled "Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina" and the January 18, 2013 technical report titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia."

SOURCE U3O8 Corp.

Richard Spencer, President & CEO, U3O8 Corp. Tel.: [phone] [email protected]

Related Links

http://www.u3o8corp.com/