TORONTO, Aug. 23, 2017 /CNW/ – U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company”) reports on provisional timing of the consolidation of the Company’s common shares and on the decision to amend the terms of certain common share purchase warrants.
Provisional Timetable for the Consolidation of the Company’s Common Shares
Based on the approval of the Company’s shareholders at the June 22, 2017 Annual & Special Meeting (“ASM”), the Company has received approval from the Toronto Stock Exchange (“TSX”) to undertake a consolidation of one new share for twenty old shares on an effective basis. Shareholders with less than 1,000 old shares will be paid out for the value of those shares and will cease to be shareholders of the Corporation.
The consolidation is anticipated to be effective on September 11, 2017. A letter of transmittal has been mailed to shareholders and is available on the Company’s profile on SEDAR, www.sedar.com, which provides all related details and instructions to shareholders.
As noted above, the effect of the consolidation depends on the number of shares held, as follows:
- For shareholders with less than 1,000 common shares of U3O8 Corp., the result of the consolidation is that their share position will be cancelled and a cash payment of CDN$0.0253 per share will be made based on the TSX five day weighted average trading price of the shares ending on the date prior to approval at the ASM (June 22, 2017). The consolidation provides a simple and cost-effective means of reducing the number of small common share lots that cost the Company a disproportionate amount in administration expenses.
- For shareholders holding 1,000 or more common shares of U3O8 Corp., their shares will be automatically consolidated such that each twenty previously issued and outstanding common shares will be exchanged to one new share. The information circular posted on the Company’s profile on SEDAR, www.sedar.com, provides further background to the consolidation.
Amendment to Terms of Certain Warrants
The Board of the Company has decided to amend the terms of common share purchase warrants (the “warrants”) that are due to expire close to the date of the share consolidation so that the holders of the warrants have a fairer opportunity to assess whether they want to exercise their warrants. The warrants affected are:
(a) 2,500,000 warrants issued on September 8, 2015 as part of a private placement, having an original expiry date of September 8, 2017. Each Warrant entitles the holder to purchase one common share of the Company at a price of CDN$0.13 per share. On a post-consolidation basis, these warrants are equivalent to 125,000 warrants with an exercise price of $2.60 per share;
(b) 180,000 broker warrants issued on September 23, 2015 as part of a private placement, having an original expiry date of September 23, 2017. Each Warrant entitles the holder to purchase one common share of the Company at a price of CDN$0.04 per share. On a post-consolidation basis, these warrants are equivalent to 9,000 warrants with an exercise price of $0.80 per share; and
(c) An aggregate of 2,500,000 warrants issued on October 03, 2015 as part of a private placement, having an original expiry date of October 3, 2017. Each Warrant entitles the holder to purchase one common share of the Company at a price of CDN$0.11 per share. On a post-consolidation basis, these warrants are equivalent to 125,000 warrants with an exercise price of $2.20 per share.
The expiry date of the above-listed warrants will be extended to December 29, 2017. The exercise price will be repriced to CDN$0.022 per common share, which on post-consolidation basis is equivalent to an exercise price of CDN$0.44 per common share.
None of the warrants issued under the private placements listed above have been exercised to date, and none of these warrants are held, directly or indirectly, by any insiders of the Company. The amendments to the 2017 warrants are subject to approval of the TSX. The amendment to the warrants will not become effective until at least ten business days from the date of this announcement. A further update will be made upon the TSX providing final approval for the amendment to the terms of the warrants.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits of uranium and associated commodities in South America. Potential by-products from uranium production include commodities used in the energy storage industry – in the manufacture of batteries – such as nickel, vanadium 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: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and YouTube: www.youtube.com/u3o8corp.