NYSE American: UEC
CORPUS
CHRISTI, Texas, Aug. 22,
2023 /PRNewswire/ - Uranium Energy
Corp (NYSE American: UEC), the "Company" or
"UEC") is pleased to announce that the Company has closed a
purchase agreement with Rio Tinto Exploration Canada Inc., a
subsidiary of Rio Tinto Inc. ("Rio Tinto"), to acquire a
portfolio of exploration-stage projects in the Athabasca Basin, Saskatchewan, Canada for $1,500,000 (CAD) (the "Transaction"). The
Company has acquired a 60% equity stake in the Henday Lake joint
venture ("Henday"), 100% of the Milliken project
("Milliken"), and a 50% equity stake in the Carswell joint
venture project ("Carswell"). With this Transaction, UEC has
added an additional 44,444 acres (17,986 Ha) of prospective ground
in the Athabasca Basin (See Figure
1) to its existing portfolio of 1,091,639 acres (441,771 Ha).
Transaction Components
- Henday project is less than five kilometers north of the
Roughrider project ("Roughrider") and close to support
infrastructure offering regional synergies with Roughrider
(acquired 10/17/22) and the other projects in the Eastern Athabasca
Hub that UEC has assembled over the last 12 months as part of the
UEX acquisition (completed 8/25/2022).
- Carswell project is located just north of the past-producing
Cluff Lake operation and has uranium showings in drill holes,
trenches, outcrop, and boulders that are consistent with the
mineralization types found at the former Cluff Lake operation.
Carswell is in close proximity to Shea Creek where the Company has
a 49.075% interest in the Shea Creek deposits (Anne, Kianna,
58B, and Collette).
- Milliken project represents the western extension of UEC's
Hidden Bay project's Wolf Lake trend
that has multiple uranium showings over 19 km.
- The $1,500,000 (CAD) Transaction
was fully funded with UEC's cash on hand. UEC had $125.4 million of cash and liquid assets, no
debt, as of the Company's latest quarterly filing for the period
ending April 30, 2023.
Canadian Growth Strategy
In the last 12-months, key milestones achieved in the Company's
Canadian growth strategy include:
- The acquisition of the 100%-owned Roughrider1 from
Rio Tinto and completion of a TRS for the project2.
- The commencement of an economic study for Roughrider that
includes a modern environmental baseline and updated economic
factors for the project.
- The acquisition of UEX1 and its portfolio of 29
uranium projects covering key areas of the producing eastern side
and development western side of prolific Athabasca basin.
- Operating joint venture partners on advanced resource stage
projects including Shea Creek, Kiggavik, Millennium, and Wheeler
River.
- The acquisition of Rio Tinto's Athabasca Exploration project
portfolio includes 60% of Henday, 100% of Milliken, and 50% of
Carswell.
- Discovery of a new mineralization zone at Christie Lake with
some of the highest grades reported in the basin this
year1 including 68.7% eU3O8 over
2.1 meters and 21.6% eU3O8 over 2.3
meters.
- The acquisitions in the past year have increased UEC's total
attributed current resources by 109.9 Mlbs of Indicated resources
and 71.0 Mlbs of Inferred resources attributed to the Roughrider,
Christie Lake, Horseshoe-Raven, Shea Creek, and Millennium
projects. Individual project disclosure is outlined in Table 1
below.
- Assembled an Athabasca land
portfolio of 1,136,083 acres (459,757 Ha) for exploration and
further growth opportunities.
Amir Adnani, President and CEO of
UEC stated: "This is our third acquisition in the Athabasca Basin in the last 12-months and
builds on the landmark acquisitions of UEX and the Roughrider
project. This acquisition represents an important component in our
strategy to assemble a premier North American uranium portfolio,
featuring near-term US production, Canadian development-stage
projects including joint ventures, and a pipeline of exploration
projects with excellent growth potential. Since the
acquisitions of Roughrider and UEX last year, the Canadian team has
issued technical reports on the Roughrider, Horseshoe-Raven,
and the Shea Creek deposits. We have also added James Hatley as Vice President Production,
Canada to the team to augment the
advancement of our Canadian assets towards production."
Chris Hamel, Vice President
Exploration, Canada stated:
"UEC is pleased to add these strategically important projects to
our existing Athabasca portfolio.
All three projects exhibit the features we seek when
acquiring quality exploration assets, including uranium anomalism
and hydrothermal alteration. In addition, these projects exhibit
excellent prospective geology with minimal to no sandstone
cover that will result in lower exploration costs and shorter
timelines to discovery. With our operator status and the data
already collected on Henday, Carswell, and Milliken, these projects
offer strong potential synergies to our existing portfolio in the
Athabasca Basin."
About the Henday Lake
Project
The Henday project is 17,801 acres (7,204 Ha) in an area, less
than five kilometers north of Roughrider, and like Roughrider is
within the prolific Wollaston-Mudjatik transition zone that is host
to many of the eastern Athabasca
deposits. UEC will acquire 60% of the project and act as the
operator of Henday project in a joint venture with Forum Energy
Metals, who owns the remaining 40%. The Company's technical
evaluation of the project revealed uranium up to 1,750 ppm
associated with altered basement rocks that has yet to be followed
up with additional drilling. The project is host to several
compelling exploration targets identified by previous operators and
the Company's technical team.
About the Carswell
Project
The Carswell project is 16,771 acres (6,787 Ha) and just 1.6 km
north of the now mined out Claude Deposit at Cluff Lake. The
Carswell project lies within the Carswell Structure, the location
of a meteorite impact that has brought the basement rocks and
uranium mineralization much closer to the surface than in the
surrounding area. Carswell is a project with multiple uranium
showings in drill holes, trenches, boulders, and outcrop that
together suggest similar controls on the mineralization as seen at
the past-producing and now decommissioned Cluff Lake Mine. Some of the mineralization
revealed in trenches is described as "radioactive Cluff Breccia
veins"3. Exploration in the area dates to 1958, with the
nearby Cluff Lake Mine operating
from 1981 to 2002 with both underground and open pit mines. UEC
will be the operator of the Carswell project and ALX Resources is
the other owner with a 50% interest in the project.
About the Milliken
Project
Milliken is 9,872 Acres (3,995 Ha) and is located along strike
of the Company's Wolf Lake trend on
its Hidden Bay project. Milliken represents a large early-stage
project that hosts similar geology to that of the Collins Bay /
Rabbit Lake Fault system. The Company has acquired 100% of Milliken
and will be the operator.
1 –
Additional Information available in related news releases on UEC's
website at www.uraniumenergy.com/news and through the Company's
profiles on SEDAR+ and EDGAR.
|
2 –
Technical Report Summaries for each project are available on UEC's
website at www.uraniumenergy.com and by reference in UEC's
2022 Form 10-K Annual Report filing on EDGAR.
|
3 –
Saskatchewan SMDI 1155,
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1155
|
Table 1 – Canadian
Uranium Oxide Mineral Resources
|
Project
|
Indicated
|
Inferred
|
Tonnes
('000's)
|
Grade
(% U3O8)
|
Pounds
U3O8 ('000's)
|
Tonnes
('000's)
|
Grade
(%
U3O8)
|
Pounds
U3O8
('000's)
|
Roughrider
(1)
|
389
|
3.25 %
|
27,842
|
359
|
4.55 %
|
36,043
|
Christie Lake
(2)
|
|
|
|
488
|
1.57 %
|
16,836
|
Horseshoe-Raven
(3)
|
10,353
|
0.16 %
|
37,426
|
|
|
|
Shea Creek
(4)
|
1,009
|
1.49 %
|
33,176
|
616
|
1.01 %
|
13,776
|
Millennium
(5)
|
217
|
2.39 %
|
11,423
|
62
|
3.19 %
|
4,364
|
(1)
|
Item 1302 of Regulation
S-K1300 Technical Resource Summary Report (the "TRS") prepared in
accordance with S-K 1300 and
was filed on May 2, 2023 with the Securities and Exchange
Commission ("SEC") through EDGAR on Form 8-K and is also
available on SEDAR as a "Material Document" filed on May 2, 2023.
The TRS was prepared on behalf of the Company by SRK
Consulting (UK) Ltd.
|
(2)
|
Christie Lake Project
resources as stated in UEC's 2022 Form 10-K Annual Report filing
available on EDGAR.
|
(3)
|
Horseshoe-Raven
Project, Saskatchewan, effective date October 31, 2022
(https://www.sec.gov/Archives/edgar/data/1334933/000143774923001598/ex_465792.htm
|
(4)
|
Shea Creek Project,
Saskatchewan, effective date October 31, 2022
(https://www.sec.gov/Archives/edgar/data/1334933/000143774923000881/ex_462410.htm)
|
(5)
|
Cameco 2023 Annual
Information Form
(https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W1388&drmKey=0f27ae5cfb1f8b90&drr=ss960cc95c85ab4982f33206be9b4a44bf7179dfa98d640902014d6cdcdde
7744917d7cc3c5b56668387cb45d6d554ee6cux&id=0c11f8b7998bcd96b5c614c17cd6d1a457534ad648cf0291)
|
The technical information in this news release have been
reviewed and approved by Chris Hamel, P.GEO., Vice President
Exploration, Canada for the
Company, being a Qualified Person as defined by Regulation S-K
1300.
About Uranium Energy
Corp
Uranium Energy Corp is the fastest growing supplier of fuel for
the green energy transition to a low carbon future. UEC is the
largest, diversified North American focused uranium company,
advancing the next generation of low-cost, environmentally friendly
In-Situ Recovery ("ISR") mining uranium projects in the
United States and high-grade
conventional projects in Canada.
The Company has two production-ready ISR hub and spoke platforms in
South Texas and Wyoming. These two production platforms are
anchored by fully operational central processing plants and served
by seven U.S. ISR uranium projects with all their major permits in
place. Additionally, the Company has diversified uranium holdings
including: (1) one of the largest physical uranium portfolios of
U.S. warehoused U3O8; (2) a major equity
stake in Uranium Royalty Corp. (NASDAQ: UROY, TSX: URC), the only
royalty company in the sector; and (3) a pipeline of resource stage
uranium projects. The Company's operations are managed by
professionals with decades of hands-on experience in the key facets
of uranium exploration, development and mining.
Stock Exchange Information:
NYSE American: 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
securities 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. Many of these factors are
beyond the Company's ability to control or predict. 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. 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 new information,
future events or otherwise. This news release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/uranium-energy-corp-acquires-portfolio-of-canadian-uranium-exploration-projects-in-saskatchewans-athabasca-basin-from-rio-tinto-exploration-canada-inc-301906379.html
SOURCE Uranium Energy Corp