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Uranium Energy Completes Acquisition of the World-Class Development-Stage Roughrider Uranium Project From Rio Tinto
CORPUS CHRISTI, Texas, Oct. 17, 2022 /CNW/ - Uranium Energy Corp (NYSE American: UEC) (the "Company" or "UEC") is pleased to announce that it has completed its
About this update from Uranium Energy Corp.
[{"type":"text","content":" CORPUS CHRISTI, Texas, Oct. 17, 2022 /CNW/ - Uranium Energy Corp (NYSE American: UEC) (the \"Company\" or \"UEC\") is pleased to announce that it has completed its previously announced acquisition of the Roughrider uranium development project (\"Roughrider\" or the \"Project\") located in the Athabasca Basin in Saskatchewan, Canada (the \"Transaction\") from a subsidiary of Rio Tinto plc (\"Rio Tinto\"). Under the terms of the Transaction, Rio Tinto has now received $80 million in cash and 17,805,815 UEC common shares, valued at $70 million based on the 5-day VWAP of $3.93 per UEC share as of October 7, 2022. The cash component of the Transaction was funded using UEC's existing balance sheet, and post-closing UEC has no debt and $93 million of cash and liquid assets. Amir Adnani, President and CEO of UEC, stated: \"We are pleased to welcome Rio Tinto as a new shareholder and value their vote of confidence in choosing to complete this transaction with UEC. With the acquisitions of Uranium One Americas, UEX and now Rio Tinto's Roughrider project, we have created an unrivalled, pure play uranium company. Our two-pronged approach combines best in-class 1) U.S. ISR production, and 2) Canadian high-grade conventional pipeline. We see unprecedented growth taking place in nuclear energy and growing demand for uranium, driven by net-zero goals and global decarbonization initiatives. With this backdrop, UEC offers un-encumbered and un-hedged exposure for investors and is positioned as a reliable supplier of uranium to western utilities with the largest diversified North American focused projects and resources.\" Mr. Adnani continued: \"By acquiring Roughrider, UEC has achieved critical mass in Eastern Athabasca basin to pursue stand-alone production plans. The 100% owned Roughrider project will anchor our Canadian high-grade conventional business and allow us to unlock value from the portfolio recently acquired from UEX. Leveraging the first-tier ESG, geotechnical and permitting work completed by Rio Tinto since 2012, we now look forward to continuing to advance Roughrider along its development path. This includes completion of a S-K 1300 technical report, review and progress on permitting requirements, and the commencement of a study on production plans.\" Roughrider Acquisition Rationale and Highligh...