TORONTO, Jan. 16, 2012 /CNW/ - Uranium One Inc. today announced record
production of 10.7 million pounds and record sales of 9.9 million
pounds for the full year 2011. Uranium One also announced that, under
the terms of the previously disclosed Mantra option agreement between
the Company and its 51% shareholder ARMZ, it has elected to pay US$150
million to ARMZ which will both extend the term of the Mantra purchase
option from June 7, 2012 to June 7, 2013 and result in Uranium One
acquiring a 13.9% stake in Mantra from ARMZ.
Attributable production for 2011 increased by approximately 45% to a
record of 10.7 million pounds U3O8, compared to 7.4 million pounds produced in 2010. During the fourth
quarter of 2011, attributable production was a record 3.4 million
pounds U3O8, an approximate 62% increase compared to 2.1 million pounds produced
during the fourth quarter of 2010.
A breakdown of Uranium One's attributable production for the fourth
quarter and for the full year 2011 is shown below.
Table 1 - Uranium One Attributable Production (million pounds U3O8)
Fiscal Year 2011
Total Attributable Production
Attributable sales for the full year 2011 were a record of 9.9 million
pounds U3O8, representing an approximate 43% increase compared to 2010 attributable
sales of 6.9 million pounds U3O8.
During the fourth quarter of 2011, the attributable sales volume was a
record of 3.2 million pounds U3O8, representing an approximate 10% increase in sales compared to 2.9
million pounds during the fourth quarter of 2010.
Under the terms of the Amended and Restated Option Agreement between
Uranium One and ARMZ announced on March 21, 2011, the Company has
elected to pay US$150 million to ARMZ which will both extend the term
of the Mantra purchase option from June 7, 2012 to June 7, 2013 and
result in Uranium One acquiring a 13.9% stake in Mantra from ARMZ,
subject to receipt of all required regulatory approvals which are
expected before the end of the first quarter of 2012.
The exercise of the option to acquire the remainder of Mantra continues
to be subject to Uranium One minority shareholder approval.
About Uranium One
Uranium One is one of the world's largest publicly traded uranium
producers with a globally diversified portfolio of assets located in
Kazakhstan, the United States, and Australia.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
Investors are advised to refer to independent technical reports
containing detailed information with respect to the material properties
of Uranium One. These technical reports are available under the
profiles of Uranium One Inc. and UrAsia Energy Ltd. at www.sedar.com. Those technical reports provide the date of each resource or reserve
estimate, details of the key assumptions, methods and parameters used
in the estimates, details of quality and grade or quality of each
resource or reserve and a general discussion of the extent to which the
estimate may be materially affected by any known environmental,
permitting, legal, taxation, socio-political, marketing, or other
relevant issues. The technical reports also provide information with
respect to data verification in the estimation.
Forward-looking statements: This press release contains certain
forward-looking statements. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes" or variations of such words and phrases, or
state that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of Uranium One to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Such risks and uncertainties include, among others, the
completion of the transactions in which Uranium One is engaged or
expects to be engaged, the state of the capital markets, changes to the
content or application of the relevant laws or regulations, the future
steady state production and cash costs of Uranium One, the actual
results of current exploration activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be
refined, possible variations in grade and ore densities or recovery
rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes or other risks of the mining
industry, delays in obtaining government approvals or financing or in
completion of development or construction activities, risks relating to
the integration of acquisitions and the realization of synergies
relating thereto, to international operations, to prices of uranium as
well as those factors referred to in the section entitled "Risk
Factors" in Uranium One's Annual Information Form dated March 31, 2011
for the year ended December 31, 2010 and the section entitled "Risks
and Uncertainties" in Uranium One's Management's Discussion & Analysis
for the period ended September 30, 2011, each of which is available on
SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document.
Although Uranium One has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
Accordingly, readers should not place undue reliance on forward-looking
statements. Uranium One expressly disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except in accordance
with applicable securities laws.
For further information about Uranium One, please visit www.uranium1.com.
SOURCE Uranium One Inc.
For further information:
Chief Executive Officer
Tel: +1 647 788 8500
Director, Corporate Development & Investor Relations
Tel: +1 647 788 8461