Trading Symbol: UEX-TSX
VANCOUVER, Feb. 13, 2013 /CNW/ - UEX Corporation (TSX:UEX) ("UEX") is
pleased to announce, further to its press release dated January 24,
2013, the satisfaction of the conditions precedent to the effectiveness
of the agreement (the "Agreement") between UEX and Uracan Resources
Ltd. ("Uracan"), pursuant to which Uracan has acquired the option to
earn from UEX a 60% participating interest in the Black Lake Project
(the "Project") in northern Saskatchewan.
Pursuant to the Agreement, Uracan has issued a total of 300,000 shares
and 150,000 warrants of Uracan to UEX effective February 13, 2013.
Each warrant shall be exercisable for a period of three years from the
date of issuance at an exercise price of $0.15 per share.
In order for Uracan to earn its 60% participating interest in the
Project, it must incur a total of $10.0 million in exploration
expenditures over 10 years. Uracan has committed to spend $2.0 million
on exploration expenditures by December 31, 2014 with a firm commitment
to spend $1.5 million even if it decides not to proceed with the
earn-in or the Agreement is otherwise terminated. Any shortfall in the
$1.5 million commitment will be payable to UEX. During the remainder
of the option period, minimum expenditures of $1.0 million per year are
required. Uracan will fund the UEX portion of all exploration work
until the earn-in option has been completed, after which further work
will be funded by the Joint Venture partners. Uracan will also grant
UEX a 1% NSR royalty on Uracan's participating interest, once earned,
until such time as an aggregate of $10.0 million in NSR royalty
payments are paid to UEX, at which time the NSR royalty will terminate.
About the Project
The Project covers a total of 30,381 hectares within the prolific
Athabasca Basin. Extensive clay alteration zones have been intersected
on the property consistent with those associated with uranium
mineralization elsewhere in the Athabasca Basin. Prospective structures
(reverse faulting on main conductor, east-west cross structures) are
also noted throughout the property and are considered good potential
hosts for uranium mineralization.
Previous exploration drilling conducted by UEX on the property has
intersected significant uranium mineralization in several areas.
Highlights with grades greater than 0.5% U3O8 and a grade thickness of greater than 0.9 include (as previously
described in UEX press releases dated October 12, 2004, August 14,
2006, February 27, 2007 and August 21, 2007, respectively):
BL-018: 0.69% U3O8 over 4.4 metres, including 1.96% U3O8 over 0.5 metres;
BL-082: 0.50% U3O8 over 3.3 metres, including 1.60% U3O8 over 0.7 metres;
BL-110: 0.79% U3O8 over 2.82 metres; and
BL-140: 0.67% U3O8 over 3.0 metres, including 1.58% U3O8 over 1.0 metre.
These mineralized intervals were encountered at the unconformity between
the overlying Proterozoic Athabasca sandstones and underlying
Archean/Aphebian basement rocks at downhole depths between 274 metres
and 315 metres.
UEX believes that the Project has the potential to host high-grade
unconformity-related uranium mineralization. Extensive exploration
potential continues to exist throughout the Project, with numerous
additional geophysical and geochemical targets remaining to be drill
Qualified Person and Geochemical Analyses
Technical information in this news release has been reviewed and
approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of
Exploration, who is a Qualified Person as defined by National
Instrument 43-101 ("N.I. 43-101") standards.
All samples were analyzed geochemically at the Saskatchewan Research
Council Geoanalytical Laboratories in Saskatoon, SK by ICP, with
additional uranium analyses by fluorimetry.
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) 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 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 17% of the global primary
uranium production. UEX is currently advancing several uranium
deposits at its two major projects which include the Kianna, Anne,
Colette and 58B deposits at its 49%-owned Shea Creek Project, and the
Horseshoe, Raven and West Bear deposits located at its 100%-owned
Hidden Bay Project.
On behalf of UEX Corporation
"Graham C. Thody"
President and CEO
Neither 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
The foregoing information may contain forward-looking information
relating to the future performance and actions of Uracan and UEX,
including the earn in and acquisition of the participating interest in
the Black Lake Project. Forward looking information is subject to a
number of known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially from those anticipated in
our forward looking statements. Such risks and other factors include,
among others, the ability to satisfy the conditions of the agreement,
the actual results of exploration activities, changes in world
commodity markets or equity markets, the risks of the mining industry
including, without limitation, those associated with the environment,
delays in obtaining governmental approvals, permits or financing or in
the completion of development or construction activities, title
disputes, change in government and changes to regulations affecting the
mining industry, and other risks and uncertainties detailed from time
to time in Uracan's and UEX's filings with the Canadian securities
administrators (available at www.SEDAR.com). Forward-looking statements are made based on various assumptions and
on management's beliefs, estimates and opinions on the date the
statements are made. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
the forward-looking information contained herein. UEX does not
undertake any obligation to update forward-looking statements if these
assumptions, beliefs, estimates and opinions or other circumstances
should change, except as required by applicable law.
SOURCE: UEX Corporation
For further information:
For further information regarding UEX, please visit www.uex-corporation.com
Graham C. Thody, President and CEO