Business
Uranium One and UrAsia Energy Announce Combination to Create Emerging Senior Uranium Company
Uranium One and UrAsia Energy Announce Combination to Create Emerging Senior Uranium Company.
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\nTrading Symbols: SXR - Toronto Stock Exchange,\n JSE Limited (Johannesburg Stock Exchange)\n UUU - TSX Venture Exchange,\n AIM (London Stock Exchange)\n\n\nTORONTO, ON, VANCOUVER, BC and JOHANNESBURG, South Africa Feb. 12 /CNW/ -\nsxr Uranium One Inc. (\"Uranium One\") and UrAsia Energy Ltd. (\"UrAsia\") are\npleased to announce that the two companies have entered into a definitive\narrangement agreement whereby Uranium One will acquire all of the outstanding\ncommon shares of UrAsia. The acquisition will result in the creation of a new,\nglobally diversified uranium producer with an exciting growth profile and a\ncombined fully-diluted market capitalization of approximately US$5 billion.\nSubject to shareholder approval, the combined company will continue under the\nname of Uranium One Inc.\n\n\nUnder the terms of the acquisition, UrAsia shareholders will receive\n0.45 common shares of Uranium One for each issued share of UrAsia,\nrepresenting a value of C$7.05 per share based upon the closing price of\nUranium One on the TSX on February 9, 2007. This represents a 13% premium to\nthe closing share price of UrAsia's shares on the TSX Venture Exchange on\nFebruary 9, 2007 and a 21% premium to the 20 day volume weighted average\ntrading prices of Uranium One's and UrAsia's shares on the TSX and TSX Venture\nExchange, respectively.\n\n\nThe new Uranium One will be one of the world's largest uranium companies\nranked by market capitalization. The profile of Uranium One will be:\n\n\n- Estimated combined attributable annual production in excess of\n 7 million pounds U3O8 from five operations in 2008 (Dominion,\n Akdala, South Inkai, Kharassan and Honeymoon)\n\n- Estimated cash operating costs of approximately US$10 to\n US$12 per pound U3O8 in steady state\n\n- Un-hedged and un-capped sales contracts provide exposure to further\n uranium price increases on substantially all projected production\n\n- Attributable proven and probable reserve base of 49 million pounds of\n U3O8, indicated resources of 102 million pounds of U3O8 and\n inferred resources of 269 million pounds of U3O8\n\n- Substantial Russian P1 resources at South Inkai and Kharassan and\n upside potential at Dominion to drive organic resource growth\n\n- A strong balance sheet with a pro forma cash balance of approximately\n US$389 million at December 31, 2006\n\n...