Corpus Christi, TX, February 9, 2018 – Uranium Energy Corp (NYSE American: UEC, the “Company” or “UEC”) is pleased to announce that the Company has closed a definitive Property Purchase Agreement (the “Agreement”), with Nuinsco Resources Limited (“Nuinsco”) to acquire 100% of the Diabase project (the “Diabase Project” or “Project”) located on the south rim of the Athabasca Basin uranium district in Saskatchewan, Canada.
- Total consideration for the acquisition is approximately $500,000 comprised of $240,000 in cash and 164,767 shares (at a deemed issuance price of $1.60 per common share).
- The property has seen in excess of US$ 20 million in historical exploration work, including over 21,000 meters of diamond drilling, geophysical surveying and surficial sampling data.
- The Project delivers a significant land package of 21,949 hectares, which overlies a highly prospective regional corridor within 75 km of Cameco’s Key Lake mill in a stable and leading jurisdiction for uranium exploration and mining.
- Efficient acquisition that preserves balance sheet flexibility in the bottom of the uranium cycle at less than 0.1% dilution to current UEC shareholders.
Clyde Yancey, VP-Exploration, stated: “Our acquisition strategy focuses on low cost, high value projects, the Diabase project is consistent with those objectives and UEC gains an opportunistic foothold in the Athabasca Basin. The project is an excellent addition to our pipeline of exploration properties for future development in a premier uranium district. We are also pleased to welcome Darcy Hirsekorn and his two decades of Athabasca Basin exploration experience to the Company’s geological team.”
UEC has now acquired the Diabase Project from Nuinsco for US$ 500,000 in aggregate consideration consisting of approximately: (i) US$ 240,000 in cash paid to Nuinsco and (ii) the issuance of 139,418 common shares to Nuinsco and 25,349 common shares to the original Project property owner.
Diabase Project Overview
The Diabase Project is a large exploration project 75 km west of Cameco’s Key Lake mill on the southern rim of Saskatchewan’s Athabasca Basin uranium district. The Project covers 21,949 hectares in ten claim blocks. Project work completed to date includes 67 diamond drill holes, regional electromagnetic, magnetic and gravity geophysical surveys, and surficial geochemistry. The Project covers a significant portion of the Cable Bay fault, a highly prospective regional-scale shear corridor.
About Darcy Hirsekorn, P.Geo.
Darcy is a seasoned professional geoscientist with over 20 years of experience in the exploration field working with Cameco Corporation. Darcy held increasingly senior roles with the company culminating in the position of District Geologist in 2016. He was part of an exploration group that outlined over 200 million pounds of uranium resources including involvement with the Millennium, Fox Lake, Eagle Point, and Tamarack deposits. Darcy brings a strong technical toolkit in all stages and aspects of exploration in diverse environments and geological settings. He is active in the mining and exploration industry, having sat on the board of the Nunavut/NWT Chamber of Mines, the executive of the local Canadian Institute of Mining Geological Section, and is currently a member of the Environment and Sustainability Committee for the Saskatchewan Association of Professional Engineers and Geoscientists of Saskatchewan. He earned his Bachelor’s degree in Geology from the University of Saskatchewan.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and was approved by Darcy Hirsekorn, P.Geo., District Geologist for the Company, a Qualified Person under NI 43-101.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium mining and exploration company. The Company’s fully-licensed Hobson Processing Facility is central to all of its projects in South Texas, including the Palangana ISR mine, the permitted Goliad ISR project and the development-stage Burke Hollow ISR project. In Wyoming, UEC controls the permitted Reno Creek ISR project. Additionally, the Company controls a pipeline of advanced-stage uranium projects in Arizona, Colorado, New Mexico and Paraguay, and a large, high-grade titanium project in Paraguay. 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.
Source: Uranium Energy