U3O8 Corp. Reports Progress on Capital Restructuring / Director Warrant Exercise

TORONTO, June 7, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB:  UWEFF) ("U3O8 Corp." or the "Company") is pleased to announce that, as part of the capital restructuring spearheaded by the proposed share consolidation to be voted upon at the Annual and Special Meeting to be held on June 22, 2017, it has reached agreement with a shareholder to reprice and accelerate an aggregate total of 19.3 million previously issued common share purchase warrants (the "Warrants').  In addition, Dr. Keith Barron, founder and director of U3O8 Corp., has offered to exercise out-of-the-money warrants as a means of providing the Company with working capital that is not dilutive to U3O8 Corp. shareholders.

Dr. Keith Barron commented: "As one of its largest shareholders, I am committed to the success of U3O8 Corp.  Having spent a considerable amount of time in the field studying the Company's Laguna Salada and Berlin deposits, I am convinced of their low production cost potential.  Consequently, I am positioning myself for the inevitable rebound in uranium sector and for accelerating growth in the battery commodities market." 

Warrant Repricing and Acceleration

The warrants upon which agreement has been reached are tabulated below, each having been linked to a private placement:

Expiry Date

Issue Date

Number of 
warrants

Exercise
Price

18-Jun-2017

18-Jun-2014

3,600,000

$0.13

05-Sep-2017

05-Sep-2014

2,500,000

$0.12

22-Oct-2017

22-Oct-2014

3,000,000

$0.08

02-Dec-2018

02-Dec-2014

3,600,000

$0.07

14-Feb-2019

14-Feb-2014

3,600,000

$0.11

29-May-2019

29-May-2014

3,000,000

$0.14

Warrants


19,300,000


 

None of the repriced and accelerated Warrants are held by insiders of the Company.

The Toronto Stock Exchange (the "TSX") has provided conditional approval for the Company to amend the exercise price of the Warrants to $0.07 per share for a two week period that ends at midnight on June 22, 2017, the day of the Company's Annual and Special Meeting. Any of the Warrants that are not exercised by that deadline will expire. The effective date of the amendment will be on or after June 21, 2017.

Director Exercising Out-of-the-Money Warrants

Dr. Keith Barron has offered to exercise approximately 2.85 million warrants that are priced at $0.035, which will provide the Company with approximately $100,000 in working capital.

The amended Warrants, plus those to be exercised by Dr. Barron, represent approximately 18% of the Company's warrants.

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.

For further information: Richard Spencer, President & CEO, U3O8 Corp., Tel.: (416) 868-1491, richard@u3o8corp.com

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http://www.u3o8corp.com/

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