VANCOUVER, March 14, 2012 /CNW/ - UEX Corporation (TSX: UEX) ("UEX") is pleased to announce that it has closed its previously announced non-brokered private placement of 3,260,869 flow-through common shares of UEX (the "Flow-Through Shares") at a price of $0.92 per Flow-Through Share for total gross proceeds to UEX of approximately $3,000,000 (the "Private Placement"). No finder's fee or commission was paid or is payable by UEX in connection with the Private Placement. The Private Placement is in addition to the bought deal short form prospectus financing completed by UEX on March 13, 2012.
Pursuant to the pre-emptive right of Cameco Corporation ("Cameco") to maintain its approximate 22.58% ownership interest in UEX, UEX issued an additional 951,256 non-flow-through common shares to Cameco at a price of $0.84 per share (being the closing price on February 17, 2012, which is the last trading day before this offer was made to Cameco) for additional gross proceeds of approximately $800,000.
UEX currently has a cash position of approximately $18.8 million and is well positioned to complete its planned exploration and development programs on all of its properties for 2012 and for the winter of 2013. It is anticipated that the 2012 exploration program at Shea Creek will begin in early April, 2011, with UEX's share of this program budgeted at $2.94 million. In addition UEX expects that it will have sufficient working capital to meet its corporate requirements through 2013.
UEX 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 Resources Canada Inc. ("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 18% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking information. Such forward-looking information is based on certain factors and assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
For further information:
Graham C. Thody
President and Chief Executive Officer
Suite 1007 - 808 Nelson Street
Canada V6Z 2H2
Tel: +1 (604) 669 2349