Uranium One Signs Credit Agreement and Provides Operational Update

About this update from Uranium One Mining Corp.

[{"type":"text","content":"\n\n\n\nTrading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg\n\n\nStock Exchange)\n\n\nVANCOUVER and JOHANNESBURG, July 2 /CNW/ - Uranium One Inc. announced\ntoday that it has concluded a senior secured revolving credit facility and\nalso provided an operational update.\n\n\nCredit Facility\n\n\nUnder the terms of the facility, the Company has the ability to borrow up\nto US$100 million from the lead lenders, Bank of Montreal and The Bank of Nova\nScotia. The facility has a two year term, and may be extended for a further\nyear with lender consent. Draw downs under the facility may be used for\ngeneral corporate purposes, including working capital requirements and funding\ncapital expenditures and acquisitions. The facility was arranged by BMO\nCapital Markets and Scotia Capital as joint lead arrangers. Endeavour\nFinancial acted as financial adviser to Uranium One.\n\n\nIn addition to the funds available under the facility, as at June 15,\n2008 the Company's consolidated cash position was approximately\nUS$145 million.\n\n\nQ2 2008 Sales and Deliveries\n\n\nIn line with the timing for deliveries under existing uranium sales\ncontracts, the Company's attributable sales volume of U(3)O(8) during Q2 2008\ntotalled 685,000 lbs, an increase of 180% over the 244,300 lbs sold in Q2 2007\nand an increase of 142% over the 283,300 lbs sold in Q1 2008.\n\n\nKazakhstan\n\n\nSouth Inkai - Industrial Production\n\n\nUranium One has recently been advised that the Kazakhstan Ministry of\nEnergy and Mineral Resources has, subject to the approval of reserves by the\nState Committee for Geology, approved the application by the Company's\n70%-owned Betpak Dala affiliate for an amendment to the South Inkai subsoil\nuse agreement to increase permitted production levels at South Inkai from\n780,000 lbs U(3)O(8) (300 tonnes U) per year to 5.2 million lbs U(3)O(8)\n(2,000 tonnes U) per year. Uranium One's attributable production at full\ncapacity is expected to be 3.6 million lbs U(3)O(8) per year.\n\n\nThe amendment, previously anticipated to be granted in the first half of\n2009, is now expected to become effective in the second half of 2008. South\nInkai is continuing to exceed expectations and, from January 1 to the end of\nMay 2008, total pre-commercial production from the mine was approximately\n479,500 lbs U(3)O(8) (335,600 l...

More updates from Uranium One Mining Corp.