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Uranium One Revises C$270 Million Financing with Japanese Consortium; Proceeds to be Received by January 15, 2010
Uranium One Revises C$270 Million Financing with Japanese Consortium; Proceeds to be Received by ...
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\nDec. 29, 2009 (Canada NewsWire Group) -- VANCOUVER and JOHANNESBURG, South Africa, Dec. 29 /CNW/ -- Uranium One Inc. today announced that the Company and its three Japanese partners (a consortium comprising The Tokyo Electric Power Company, Inc., Toshiba Corporation and The Japan Bank for International Cooperation) have executed documentation revising the February 9, 2009 private placement between the Company and Japan Uranium Management Inc. (\"JUMI\"), a company owned by the consortium, to a debenture financing.All regulatory, third party and other approvals required to complete the debenture financing have been received. Closing is expected to occur on or about January 15, 2010, at which time the corporation will receive aggregate proceeds of C$269,100,000.The February 9, 2009 private placement contemplated the issuance to JUMI of 117,000,000 common shares of Uranium One at an issue price of C$2.30 per share, for aggregate gross proceeds of C$269,100,000.Under the revised terms of the private placement, Uranium One will issue to JUMI C$269,100,000 aggregate principal amount of 3% unsecured convertible debentures maturing ten years from the date of issue. The debentures will automatically convert into 117,000,000 Uranium One common shares on receipt of required Kazakh regulatory approval, which is expected during 2010. If such approval is not received, the holder may, on 12 months' notice, cause the debentures to be redeemed at par plus accrued and unpaid interest. Such redemption may not occur before the second anniversary of the closing in January 2012.The previously announced long-term offtake and strategic relationship agreements with the JUMI consortium will become effective on closing. Under the offtake agreement, the consortium has an option to purchase, on industry-standard terms, up to 20% of Uranium One's available attributable production from assets in respect of which it has the marketing rights.The strategic relationship agreement provides the JUMI consortium on closing of the transaction with the right to appoint two directors to the Uranium One board and a right of first opportunity to invest in any uranium mining asset or project which Uranium One may in its discretion make available to third parties. The agreement also contains a standstill provision under which the consortium has agreed, subject to ce...