TORONTO, ONTARIO–(Marketwired – Nov. 6, 2017) – Uranium Participation Corporation (“UPC”) (TSX:U) reports its estimated net asset value at October 31, 2017 was CAD$436.6 million or CAD$3.30 per share. As at October 31, 2017, UPC’s uranium investment portfolio consisted of the following:
(in thousands of Canadian dollars, except quantity amounts) Quantity Fair Value Investments in Uranium: Uranium oxide in concentrates (“U3O8“) 10,680,024 lbs $ 274,706 Uranium hexafluoride (“UF6“) 1,903,471 KgU $ 138,046 $ 412,752 U3O8 fair value per pound: – In Canadian dollars 1 $ 25.72 – In United States dollars $ 19.95 UF6 fair value1 per KgU: – In Canadian dollars 1 $ 72.52 – In United States dollars $ 56.25
1 Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada’s month-end daily exchange rate of $1.2893.
On October 31, 2017, the common shares of UPC closed on the TSX at a value of CAD$3.51, which represents a 6.36% premium to the net asset value of CAD$3.30 per share.
On September 25, 2017, UPC announced a bought-deal equity offering of 10,745,000 common shares, at a price of CAD$3.50 per share, for gross proceeds of $37,607,500, with an overallotment option of an additional 855,000 common shares at CAD$3.50 per share. The offering was completed on October 4, 2017 and the overallotment option was fully exercised. Accordingly, UPC issued 11,600,000 common shares for total gross proceeds of $40,600,000. The proceeds of the offering are intended to be used by UPC to fund purchases of uranium and for general corporate purposes.
As at October 31, 2017, UPC completed purchases and has taken delivery of 600,000 pounds U3O8, at an average cost of US$20.29 (CAD$25.42) per pound.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates (“U3O8“) and uranium hexafluoride (“UF6“) (collectively “uranium”), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on Uranium Participation Corporation’s website at www.uraniumparticipation.com.