DGAP-News: Uranium Energy Corp to Acquire a Large Uranium Project in Paraguay
(firmenpresse) - DGAP-News: Uranium Energy Corp. / Key word(s): Acquisition
Uranium Energy Corp to Acquire a Large Uranium Project in Paraguay
12.05.2011 / 15:15
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Uranium Energy Corp to Acquire a Large Uranium Project in Paraguay
- In-situ recovery amenability indicated by Company's initial aquifer
test;
- Historic mineralized trends established by Anschutz Corporation in
1980s;
- 247,000-acre project holds large-scale potential with similar
mineralization and geological setting as the Company's ISR projects in
South Texas
Corpus Christi, TX - May 12, 2011 -- Uranium Energy Corp (NYSE-AMEX: UEC,
the 'Company') is pleased to announce that, effective May 11, 2011, the
Company has entered into a Share Exchange Agreement (the 'Agreement') with
a Nevada company (the 'Vendor') whereby the Company is acquiring a
Paraguayan company which holds a 100% legal and beneficial interest in two
unencumbered prospecting permits covering 247,000 acres located in the area
of Coronel Oviedo, Paraguay (the 'Property'), subject to a gross overriding
royalty.
The total purchase price for the Paraguayan company is the issuance of
225,000 restricted common shares in the capital of the Company.
The Company has also agreed to pay the Vendor a royalty interest in the
amount of one and one-half percent (1.5%) of the gross proceeds received by
the Company in connection with any uranium which is produced and sold from
mineral interests in the Property. The Company also has the exclusive right
and option at any time to acquire one-half percent (0.5%) of the aggregate
royalty interest for US$500,000. The Vendor has granted the Company a right
of first refusal to acquire all or any portion of the remaining one percent
(1.0%) royalty interest.
Amir Adnani, President and CEO, stated, 'The Company's primary focus
remains on our production and near-term production projects in South
Texas. At the same time, we are committed to identifying new and
potentially exceptional opportunities with scale in the United States and
abroad. The Coronel Oviedo Property is located in stable and
business-friendly Paraguay, is geologically very similar to the South Texas
uranium belt and is anticipated to be ISR-amenable as initially indicated
through our pump-test studies. This opportunity profile is an excellent fit
for our technical team who has a distinctive track record of discovering
and advancing sandstone-hosted uranium deposits. Share dilution to acquire
the project is far below 1%, and we plan to commence exploration
immediately.'
Prior Exploration
The Property, covering over 247,000 acres in central Paraguay, was subject
to extensive uranium exploration between 1976 and 1983 by Anschutz
Corporation of Denver, Colorado, and by Crescent Resources Corp. between
2006 and 2008. Most of the uranium occurrences in this environment are
'roll-front' type mineralization similar to deposits currently being
produced by low-cost in-situ recovery (ISR) methods in Texas, the western
United States, Central Asia and Australia. The work by Anschutz and
Crescent was centered on a large belt of Permo-Carboniferous age
continental sandstones that represent the western flank of the Parana
Basin. According to the Geological Survey of Brazil or CPRM, these same
sandstones within the Brazilian section of the Parana Basin contain
numerous uranium occurrences including the Figueira Mine that hosted 19
million pounds of U3O8 according to published government reports.
Between 1976 and 1983, Anschutz Corporation, with joint venture partners
Korea Electric Power and Taiwan Power Company, spent approximately US$30
million evaluating an area covering over 6.2 million acres of prospective
ground in central and eastern Paraguay. This work consisted of airborne
radiometric and magnetic surveys, detailed geological mapping, and ground
geophysical and geochemical surveys, which narrowed down the areas of
interest. This work was followed by regional-scale drilling at initially
9-mile spacing, drilled across inferred host trends.
Anschutz identified the Property as prospective towards the end of their
regional program. In total, approximately 28 widely spaced drill holes
were drilled on the Property, and of these, 17 drill holes showed
significant uranium values, with the best being 6.2 feet of 0.153% U3O8 at
a starting depth of 785 feet. The drilling also identified three
mineralized fronts, and a 75 mile-long fault structure which appears to
have been the source of the gases that localized the concentration of
uranium, again very similar to a South Texas-type uranium depositional
model.
From 2006 to 2008, the Property was optioned to Crescent Resources. During
this period, a total of 24 holes were drilled and logged in the southern
portion of the Property, offsetting mineralized holes drilled by Anschutz.
According to Crescent's 2008 NI 43-101 Technical Report, of the 24 holes
drilled, a total of 14 had a grade-thickness (GT) product (in feet) equal
to or greater than 0.30GT. GT values equal to and above 0.30 are typically
considered producible under ISR production methodology. The best hole
reported by Crescent intersected 0.062% U3O8 over 13.5 feet. The Crescent
and Anschutz drilling identified an open-ended mineralization area
characterized by tabular mineralization similar to that found at the
Company's Goliad Project. The known uranium mineralization on the Property
intersected by the past drilling is at depths between 450 and 750 feet.
Crescent dropped the option on the Property in 2008.
Aquifer Test
During 2010, and prior to entering into the Agreement, the Company
conducted a 24-hour aquifer test in the area of the mineralization trend
identified by the combined Anschutz-Crescent drilling programs. The test,
performed by HydroSolutions based in Denver, Colorado, was designed to
assess aquifer properties of the Fine Grained Sand Unit (FGSU), a
uranium-bearing sandstone within the San Miguel Formation. The focus of the
test was to determine if the aquifer could sustain extraction rates typical
of ISR mining of uranium.
Results of the test indicate that the uranium-bearing unit has aquifer
characteristics that would support operational rates for ISR mining. There
is sufficient hydraulic head and aquifer transmissivity that would allow
individual wells to be pumped at rates of up to 45 gallons/min for
sustained intervals. The aquifer properties determined from the hydrologic
test fall within the range of values determined at other uranium ISR
projects located in Wyoming, Texas and Nebraska. Production rates from
wells in these areas are typically in the range of 10 to 50 gallons/min.
The Company is currently evaluating all available technical data in
preparation for an exploration program to commence very soon.
Advisory Board for the Paraguay Project
As a key factor in the Property acquisition, the Company has now added two
uranium industry veterans, Dr. Bernie D. Schmeling and Carlos Figueredo, to
a special advisory board focusing on Paraguay to bolster its management
capabilities in Latin America.
Dr. Schmeling, currently Chief Operating Officer of Semin S.A., is a
professional geophysicist and has more than 35 years of experience in
exploration programs worldwide and mining projects for uranium and other
commodities. Previously, he was a member of the original Uranerz team as a
senior and chief geophysicist for 19 years. During this period, he was
closely involved, starting in 1975, with the discovery and development of
the major uranium deposit at Key Lake in Saskatchewan, Canada. For 13
years, he managed all geophysical programs as well as all contracted work
including all drill hole data evaluations and U3O8-grade calculations. This
work included studies of radiometric disequilibrium factors and density
determinations for the U3O8 resource calculations at diverse sandstone
deposits in Texas, Wyoming, Nebraska, Colorado and other states. Since
2006, he has been fully involved in the exploration and development
activities of Semin S.A. in Paraguay and other South American countries.
Dr. Schmeling is recognized internationally as one of the few leading
experts in uranium exploration including ISR exploration.
Carlos Figueredo has 25 years of experience in mineral and oil exploration
in Paraguay as Chief Geologist and Assistant Mineral Exploration Manager of
Semin S.A. He formerly worked for Anschutz Corporation during its initial
exploration efforts in Paraguay. He played a pivotal role in the
development of the Coronel Oviedo project, as well as discoveries of other
commodities in eastern Paraguay.
The technical information in this news release was prepared in accordance
with the Canadian regulatory requirements set out in National Instrument
43-101 and reviewed by Clyde L. Yancey, P.G., Vice President of Exploration
for Uranium Energy Corp, a qualified person under NI 43-101
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company operating North America's newest emerging uranium mine.
The Company's fully licensed and permitted Hobson processing facility is
central to all of its projects in South Texas, including the Palangana
in-situ recovery project, which is ramping up initial production, and the
Goliad in-situ recovery project which is in the final stages of mine
permitting for production. The Company's operations are managed by
professionals with a recognized profile for excellence in their industry, a
profile based on many decades of hands-on experience in the key facets of
uranium exploration, development and mining.
Contact North America: Investor Relations, Uranium Energy Corp:
Toll Free: (866) 748-1030
Fax: (361) 888-5041
E-mail: info(at)uraniumenergy.com
Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein, the
information presented in this news release constitutes 'forward-looking
statements' as such term is used in applicable United States and Canadian
laws. These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements that
express or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
'expects' or 'does not expect', 'is expected', 'anticipates' or 'does not
anticipate', 'plans, 'estimates' or 'intends', or stating that certain
actions, events or results 'may', 'could', 'would', 'might' or 'will' be
taken, occur or be achieved) are not statements of historical fact and
should be viewed as 'forward-looking statements'. Such forward looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
risks and other factors include, among others, the actual results of
exploration activities, variations in the underlying assumptions associated
with the estimation or realization of mineral resources, the availability
of capital to fund programs and the resulting dilution caused by the
raising of capital through the sale of shares, accidents, labor disputes
and other risks of the mining industry including, without limitation, those
associated with the environment, delays in obtaining governmental
approvals, permits or financing or in the completion of development or
construction activities, title disputes or claims limitations on insurance
coverage. Although the Company 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 such statements will
prove to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.
Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although the
Company believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved. Forward-looking information is
subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Many of these factors
are beyond the Company's ability to control or predict. Important factors
that may cause actual results to differ materially and that could impact
the Company and the statements contained in this news release can be found
in the Company's filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. The Company assumes
no obligation to update or supplement any forward-looking statements
whether as a result of news information, future events or otherwise. This
press release shall not constitute an offer to sell or the solicitation of
an offer to buy securities.
Important Additional Information Will Be Filed With the SEC
In connection with the previously announced proposed merger (the 'Merger')
between the Company and Concentric Energy Corp. ('Concentric'), the Company
intends to file relevant materials with the United States Securities and
Exchange Commission (the 'SEC'), including a registration statement on Form
S-4 (the 'Registration Statement'), which will include a preliminary
prospectus and related materials to register the securities of the Company
to be issued in exchange for securities of Concentric. The Registration
Statement will incorporate a proxy statement (the 'Proxy Statement') that
Concentric plans to file with the SEC and mail to its stockholders in
connection with obtaining stockholder approval of the Merger. The
Registration Statement and the Proxy Statement will contain important
information about the Company, Concentric, the Merger and related matters.
Investors and security holders are urged to read the Registration Statement
and the Proxy Statement carefully when they are available. Investors and
security holders will be able to obtain free copies of the Registration
Statement and the Proxy Statement when they become available, and other
documents filed with the SEC by the Company and Concentric, through the web
site maintained by the SEC at www.sec.gov. Documents filed by the Company
with the SEC may be obtained free of charge by contacting the Company at:
Uranium Energy Corp.; attention: Mr. Mark Katsumata, CFO; 500 North
Shoreline, Suite 800N, Corpus Christi, Texas, 78401; Tel: (866) 748-1030
Concentric, and its directors and executive officers, may be deemed to be
participants in the solicitation of proxies from Concentric's stockholders
in connection with the Merger. Information regarding any special interests
of these directors and executive officers in the Merger will be included in
the Proxy Statement.
End of Corporate News
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124409 12.05.2011
Datum: 12.05.2011 - 15:15 Uhr
Sprache: Deutsch
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