Saskatoon, Saskatchewan, May 5, 2021 – UEX Corporation (TSX:UEX, OTCQB:UEXCF) (“UEX” or the “Company”) responds to Denison Mine Corp.’s (“Denison”) news release of May 4, 2021 announcing that it has delivered an offer (the “Denison Offer”) to Overseas Uranium Resources Development Co., Ltd. (“OURD”) to acquire OURD’s wholly-owned subsidiary, JCU (Canada) Exploration Company, Limited (“JCU”).
As announced on April 22, 2021, UEX entered into a binding agreement with OURD to acquire its wholly-owned subsidiary, JCU (the “UEX Agreement”). OURD cannot deal with or respond to the Denison Offer and is bound to complete the sale of JCU to UEX (the “UEX Transaction”) pursuant to the terms of the UEX Agreement, subject only to the approval of shareholders of OURD at a meeting which is scheduled to be held on June 18, 2021. The UEX Transaction was approved by the board of directors of OURD who are obligated to recommend its acceptance by OURD shareholders. As those directors represent shareholders of OURD hold the majority of the shares of OURD, UEX is confident that the shareholders of OURD will approve the UEX Agreement.
UEX considers the public announcement of the Denison Offer as opportunistic and constitutes an interference in the contractual rights existing between UEX and OURD. The fact that OURD was looking to sell JCU was generally known in the uranium mining space. UEX has been in discussions with OURD regarding the acquisition of JCU for several months prior to announcing the UEX Agreement. If Denison were serious about acquiring JCU, it had more than adequate time and opportunity to act.
The UEX Agreement with OURD is binding and enforceable and it is not open to OURD to consider
any competing proposals.
UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects, including a number that are 100% owned and operated by UEX, one joint venture with Orano Canada Inc. (“Orano”) and ALX Uranium Corp. (“ALX”) that is 51.43% owned by UEX, as well as eight joint ventures with Orano, one joint venture with Orano and JCU (Canada) Exploration Company Limited, which are operated by Orano, and one project (Christie Lake), that is 65.55% owned by UEX with JCU (Canada) Exploration Company Limited which is operated by UEX.
The Company 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 was formerly part of UEX’s Hidden Bay Project and contains the West Bear Cobalt-Nickel Deposit and the West Bear Uranium Deposit. UEX also owns 100% of two early stage cobalt exploration projects, the Axis Lake and Key West Projects.
Our 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. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Christie Lake deposits, the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project (located 50 kilometres north of Fission’s Triple R Deposit and Patterson Lake South Project, and NexGen’s Arrow Deposit), 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.