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Uranium One Signs Definitive Agreement to Acquire U.S. Energy Corp.'s Shootaring Canyon Uranium Mill and U.S. Uranium Properties
Uranium One Signs Definitive Agreement to Acquire U.S. Energy Corp.'s Shootaring Canyon Uranium Mill and U.S. Uranium Properties.
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\nTrading Symbol: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg\n\n\nStock Exchange)\n\n\nTORONTO and JOHANNESBURG, South Africa, Feb. 23 /CNW/ - sxr Uranium One\nInc. ("Uranium One") is pleased to announce that it has entered into a\ndefinitive agreement with U.S. Energy Corp. and its affiliate, Crested Corp.,\nfor the purchase of the Shootaring Canyon Uranium Mill in Utah, as well as a\nland package comprising approximately 38,763 acres of uranium exploration\nproperties in Utah, Wyoming, Arizona and Colorado and a substantial database\nof geological information with respect to an additional 1,582,036 acres in a\nfive-mile zone surrounding the purchased properties.\n\n\nNeal Froneman, Chief Executive Officer of Uranium One, said: "The\nexecution of this agreement marks a major step forward in our U.S. growth\nstrategy. The acquisition of the Shootaring Canyon Mill and related uranium\nproperty interests will serve as the foundation for our growth in the United\nStates. We look forward to closing this transaction and to expanding our U.S.\nbusiness in line with our growth strategy."\n\n\nTerms of the Acquisition\n\n\nThe asset purchase agreement follows a period of detailed due diligence\nconducted by Uranium One under an exclusivity agreement entered into between\nthe parties on July 10, 2006.\n\n\nUnder the asset purchase agreement, Uranium One has agreed to purchase\nthrough certain of its subsidiaries the Shootaring Canyon Mill and related\nproperty interests for consideration equal to 6,607,605 Uranium One common\nshares plus the sum of US $750,000 in cash paid by Uranium One on execution of\nthe exclusivity agreement. In addition, in accordance with the provisions of\nthe exclusivity agreement, Uranium One has agreed to pay U.S. Energy US\n$20,000,000 upon the Shootaring Canyon Mill reaching commercial production and\nUS $7,500,000 on the first delivery to the Mill after commercial production of\nmineralized material from any of the purchased properties; U.S. Energy will\nalso receive a royalty equal to 5% of the gross proceeds from the sale of\ncommodities produced at the Mill, to a maximum amount of US $12,500,000.\n\n\nThe purchase agreement also provides for the assignment of U.S. Energy's\nright to receive US $4,100,000 in cash and 1,500,000 common shares of Uranium\nPower Corp. (&...