Uranium One Announces C$270 Million Financing and Formation of Strategic Relationship with Japanese Consortium

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[{"type":"text","content":"\n\n\n\nTrading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg\nStock Exchange)\n\n\nVANCOUVER, and JOHANNESBURG, South Africa, Feb. 10 /CNW/ Uranium One Inc.\ntoday announced that it has entered into a subscription agreement with a\ncorporation formed by The Tokyo Electric Power Company, Incorporated, Toshiba\nCorporation, and The Japan Bank for International Cooperation providing for\nthe private placement of an aggregate of 117,000,000 common shares of Uranium\nOne, for gross proceeds of approximately C$270 million.\n\n\nConcurrently with the execution of the subscription agreement, Uranium\nOne has also entered into a long-term offtake agreement and a strategic\nrelationship agreement with the Japanese consortium, both of which will become\neffective upon closing of the private placement.\n\n\nThe offtake agreement provides the consortium with an option to purchase,\non industry-standard terms, up to 20% of Uranium One's available production\nfrom assets in respect of which Uranium One has the marketing rights.\n\n\nUnder the strategic relationship agreement, the Japanese consortium has\nthe right to appoint two directors to the Uranium One board and a right of\nfirst opportunity to invest in any uranium mining asset or project which\nUranium One may in its discretion decide to make available to third parties.\nThis agreement also contains a standstill provision under which the consortium\nhas agreed, subject to certain exceptions, not to acquire without Uranium\nOne's prior approval more than 19.95% of Uranium One's issued common shares.\nThe Japanese consortium has also agreed not to dispose of any significant\nportion of its Uranium One shares except by way of a broad market distribution\nor pursuant to certain other limited exceptions.\n\n\nThe rights granted under both the offtake agreement and the strategic\npartnership agreement are generally subject to the consortium continuing to\nmeet certain equity ownership thresholds.\n\n\nThe private placement issue price of C$2.30 per share represents a 15%\npremium to the 20-day volume weighted average price of Uranium One common\nshares on the Toronto Stock Exchange. Upon closing of the private placement,\nthe consortium will have a 19.95% equity stake in Uranium One.\n\n\nClosing of the subscription agreement is subject to the receipt of\ncertain regulator...

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