Saskatoon, Saskatchewan – TheNewswire - August 3, 2021 – UEX Corporation (TSX:UEX), (OTC:UEXCF) (“UEX” or the “Company”) is pleased to announce that UEX has closed the transaction (the “JCU Transaction”) with Overseas Uranium Resources Development Co., Ltd. (“OURD”) to acquire OURD’s wholly-owned subsidiary JCU (Canada) Exploration Company, Limited (“JCU”), as disclosed in UEX’s news releases dated April 22, 2021 and June 15, 2021, in consideration for the payment of C$41 million.
UEX is also pleased to announce that it has closed the transaction with Denison Mines Corp. (“Denison”) announced in UEX’s news release dated June 15, 2021. The Company has sold 50% of JCU shares to Denison in consideration for the payment of C$20.5 million to UEX following the close of the JCU transaction.
Denison provided UEX with an interest-free three-month term loan of C$40.95 million (the “Term Loan”) which UEX used to purchase of 100% of the shares of JCU under the JCU Transaction. UEX may extend the Term Loan by an additional three months, in which case interest will be charged at a rate of 4% from the date of the initial advance under the Term Loan until maturity.
A total of C$20.5 million of the Loan was immediately retired upon UEX transferring 50% of the JCU shares to Denison following the closing of the JCU Transaction. All JCU shares owned by UEX are pledged as security as the sole recourse to Denison against the balance of the Term Loan until the Term Loan is repaid in full. The Term Loan is subject to certain customary terms and conditions and contains standard events of default that protect Denison.
UEX and Denison have entered into a shareholders’ agreement governing the management of JCU. UEX will be the manager of JCU as long as Denison does not own more than 50% of the shares of JCU.
“UEX would like to thank OURD for trusting UEX to be the steward for the impressive and strategically important uranium project portfolio which they have assembled and developed over the past twenty-one years. The JCU portfolio holds interests in some of Canada’s key future uranium development projects including Denison’s Wheeler River Project, Cameco’s Millennium Project, and Orano’s Kiggavik Project. UEX is excited to have closed these two transactions to become co-owners of JCU with Denison. We look forward to working with Denison to help develop the next generation of Canadian uranium mines.”
--Roger Lemaitre, President & CEO, UEX Corporation
Advisor
Sprott Capital Partners LP acted as financial advisor, and Koffman Kalef LLP acted as legal counsel to UEX.
About UEX
UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects.
UEX’s directly-owned portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which in 2019 accounted for approximately 12.6% of the global primary uranium production. In addition to advancing its uranium development projects through its ownership interest in JCU, UEX is currently advancing several other uranium deposits in the Athabasca Basin which include the Paul Bay, Ken Pen and Ōrora deposits at the Christie Lake Project , the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, the Horseshoe and Raven deposits located on its 100%-owned Horseshoe-Raven Development Project and the West Bear Uranium Deposit located at its 100%-owned West Bear Project.
UEX is also 50:50 co-owner of JCU (Canada) Exploration Company Ltd. (“JCU”) with Denison Mines Corp. JCU’s portfolio of projects includes interests in some of Canada’s key future uranium development projects, notably a 30.099% interest in Cameco’s Millennium Uranium Development Project, a 10% interest in Denison Mines Wheeler River Project, and a 33.8123% interest in Orano Canada’s Kiggavik Project, located in the Thelon Basin in Nunavut, as well as minority interests in nine other grassroots uranium projects in the Athabasca Basin.
UEX is also leading the discovery of cobalt in Canada, with three cobalt-nickel exploration projects located in the Athabasca Basin of northern Saskatchewan, including the only primary cobalt deposit in Canada. The 100% owned West Bear Project hosts the West Bear Cobalt-Nickel Deposit, the newly discovered Michael Lake Co-Ni Zone, and the West Bear Uranium Deposit. UEX also owns 100% of two early-stage cobalt exploration projects, the Axis Lake and Key West Projects.
FOR FURTHER INFORMATION PLEASE CONTACT
Roger Lemaitre
President & CEO
(306) 979-3849
Forward-Looking Information
This news release contains 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 strategic plans, estimates of mineral resources on UEX’s properties and historical estimates of mineral resources on the JCU properties, the outlook for future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. Such forward-looking information is based on certain factors and assumptions, including the reliability of historic resource estimates on JCU’s mineral properties and liabilities. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to the historic resource estimates on the JCU properties, continuity and grade of deposits, fluctuations in uranium, cobalt and nickel prices and currency exchange rates, changes in environmental and other laws affecting uranium, cobalt and nickel 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.
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