TORONTO, Nov. 16, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the "Company") is pleased to outline how the offer of a C$1 million line of credit by the Company's founder and director, Dr. Keith Barron, in addition to funds recently raised by the Company, will be used to undertake proof-of-concept work on its Laguna Salada uranium-vanadium deposit in Argentina. The funds allow the Company to do specific test work that, if successful, is likely to significantly improve the economics of Laguna Salada by lowering operating and capital costs from those determined in the positive preliminary economic assessment ("PEA") undertaken in 2014.
"I believe that there is a clear path for U3O8 Corp. to become a uranium and vanadium producer from the Laguna Salada Deposit," said Dr. Keith Barron. "To help U3O8 Corp. achieve that goal, I have pledged to support the Company with a convertible debt facility of up to C$1 million to be paid back in shares in a maximum of three years. I cannot think of a more concrete way to demonstrate my faith in the Company: I will finance the Company at a zero-interest rate and will only be repaid in shares in the future when the share price is likely to have strengthened on the back of successful proof-of-concept test work."
"The monies will be used to finance proof-of-concept production tests. In addition, I have released my Manager of Operations at the Potentate Sapphire Mine in Montana – where we process gravel to recover gemstones - to U3O8 Corp. on a temporary basis. John Rae is a Mining Engineer who will draw on his extensive experience to optimize the screening and washing of gravel at Laguna Salada to ensure that its mineralization is concentrated in the most cost-effective way. This pilot-scale test work will use standard road-building and alluvial mining equipment sourced from local operators and repurposed in a cost-effective way. U3O8 Corp.'s Director, David Marsh, who was instrumental in the design and operation of the uranium processing plant at the Langer Heinrich mine in Namibia, is refining plans for our test work program. Dave is uniquely qualified to oversee and dynamically adapt the test work program as results become available."
"I am bullish long-term on uranium and vanadium prices. Cameco's announcement last week, to cut production from some of its biggest, highest-grade operations in Canada, unequivocally makes the point that the current low uranium price is unsustainable. Cameco's production cut, combined with those from other producers like KazAtomProm, go a long way towards eliminating the current over-supply to the market and should be a key factor in strengthening the uranium commodity price. However, until there is sustained strength in uranium equities, I will stand behind U3O8 Corp. We will use the significant funds that may otherwise be spent on additional NI43-101 reports, to complete proof-of-concept test work. Our CFO will carefully monitor the real costs of our proof-of-concept program and make them transparent to shareholders in our quarterly filings. My personal goal is to fast-track the Laguna Salada Project to demonstrate that we can supply the current nuclear needs of Argentina, as well as the forecast requirements from the Argentine-designed and built small modular reactor."
For further details on Argentina's electricity generation from large nuclear reactors, as well as its prototype small modular reactor that represents a prime export opportunity, please see the Corporate Presentation accessible on the homepage of our website http://www.u3o8corp.com.
Cautionary Note: A 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.
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.
For further information: Richard Spencer, President & CEO, U3O8 Corp. Tel.: (416) 868-1491, email@example.com