Toronto, Ontario – August 31, 2016 – U3O8 Corp. (TSX: UWE; OTCQX: UWEFF; SSE: UWECL) announces that it is undertaking a best efforts non-brokered private placement of up to 33,333,334 units (“Units”) at a price of $0.03 per Unit, for gross proceeds of approximately $1 million (the “Offering”).
Each Unit shall consist of one common share of U3O8 Corp. (“Share”) and one Share purchase warrant (“Warrant”). Each Warrant shall entitle the holder to purchase one Share at an exercise price of $0.045 for a period of 24 months from the closing date.
The net proceeds will be used principally to advance the Laguna Salada uranium-vanadium deposit toward a pre-feasibility study through:
Pilot plant test work designed to generate more precise estimates of operating and capital costs than those used in the Preliminary Economic Assessment (“PEA”) that was completed in September 2014; and
Further exploration of the La Susana and La Rosada discoveries that have been made adjacent to the Laguna Salada Deposit. Demonstrating uranium resource growth potential in these areas is a priority for the advancement of the project because the PEA shows that a larger resource is beneficial: the larger the deposit, the better its economics.
Proceeds will also be used for general corporate purposes. The securities issued and issuable pursuant to the Offering will be subject to a statutory 4-month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
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.