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Uranium Energy Corp to Acquire Cue Resources Ltd.

January 23, 2012

CORPUS CHRISTI, TX and VANCOUVER, BC, Jan. 23, 2012 /PRNewswire/ – Uranium
Energy Corp. (NYSE-AMEX: UEC) and Cue Resources Ltd. (TSX-V: CUE) are
pleased to announce that they have entered into an Arrangement
Agreement under which UEC will acquire all of the outstanding common
shares of CUE by way of a plan of arrangement (the “Arrangement”). 
Upon completion of the Arrangement, it is anticipated that
approximately 2,336,260 shares of UEC’s common stock will be issued to
former CUE stockholders to acquire CUE and its wholly-owned subsidiary
holding an undivided 100% legal and beneficial interest in and to
certain concession contracts covering a 230,650-hectare uranium
exploration property located in southeastern Paraguay and known as the
Yuty Project.

Amir Adnani, UEC President and CEO, stated, “The Company’s plan is to
make the Yuty Project our second major uranium asset in Paraguay. 
CUE’s projects and resources will be synergistic with our current
operations, and consistent with our development strategy in this stable
and business-friendly country.  With share dilution at a low 3.1% for
this acquisition, UEC continues to expand and diversify its project
portfolio at attractive costs with projects that have been the subject
of significant exploration and development.”

Robert Tyson, CUE President and CEO, stated, “Since the Fukushima
disaster, funding uranium projects has been a challenging task. The
severe reduction in enterprise value and share price required CUE’s
Board of Directors to pursue alternative financing opportunities in the
best interests of CUE and our shareholders. Consummation of this
relationship with UEC allows for our project to advance.  UEC is a
recognized ISR uranium producer with a technical team that has an
established record of developing and producing sandstone-hosted uranium
deposits.”

The Yuty ISR Project

The Yuty ISR Project covers 230,650 hectares and is located
approximately 200 kilometers east and southeast of Asunción, the
capital of Paraguay.  It is located within the Paraná Basin, which is
host to a number of known uranium deposits, including Figueira and
Amorinópolis in Brazil. Preliminary studies indicate amenability to
extraction by in situ recovery methods, which is the same process
currently used by UEC at its Texas operations. CUE has spent over
CAD$16 million developing Yuty since 2006.

In 1976, uranium exploration in southeastern Paraguay was initiated by
Anschutz Corporation (“Anschutz”) of Denver, Colorado, on behalf of a
joint venture with Korea Electric Power Corporation and Taiwan Power
Company.  This exploration was conducted under an exclusive exploration
and exploitation concession covering 162,700 square kilometres,
virtually the entire eastern half of Paraguay, and identified several
large target areas including the Yuty Project.  In total, approximately
75,000 meters of core and rotary drilling were completed by Anschutz
between 1976 and 1983 when further work ceased due to low uranium
prices.

In July 2006, CUE acquired an option on the Yuty Project and initiated
rotary and diamond drilling programs.  Between 2007 and 2010, CUE
completed 256 drill holes totaling 31,000 meters of core and rotary
drilling and acquired a 100% interest in the Yuty Project.

The current resource for the Yuty Project is 8.914 Million lbs of eU(3)0(8) Measured plus Indicated, and 2.226 Million lbs of eU(3)0(8) Inferred, which has been finalized in a technical report prepared for
CUE titled “Updated Technical Report on the Yuty Uranium Project,
Republic of Paraguay” dated August 24, 2011 (the “Yuty Technical
Report”). The Yuty Technical Report shows an increased average grade
and resource at the Yuty Project as follows:


            Measured Resource 2.054M tonnes @ 0.062 % eU3O8 containing
            2.801M lbs eU3O8
            Indicated Resource 5.783M tonnes @ 0.048 % eU3O8 containing
            6.113M lbs eU3O8
            Inferred Resource 2.139M tonnes @ 0.047 % eU3O8 containing
            2.226M lbs eU3O8

The technical information in this news release was prepared in
accordance with the Canadian regulatory requirements set out in NI
43-101 and is extracted from the Yuty Technical Report, which is filed
on CUE’s SEDAR profile and is available for viewing at www.sedar.com. The technical information in this news release and the Yuty Technical
Report have been reviewed by each of Chris M. Healey, P. Geo., a
director of CUE, and Clyde L. Yancey, P.G., Vice President of
Exploration for UEC, each being a qualified person as defined by NI
43-101.  To the best of UEC’s knowledge, information, and belief, there
is no new material scientific or technical information that would make
the disclosure of the mineral resources contained in this news release
inaccurate or misleading.  The Yuty Project is described in more detail
in the press release of CUE dated August 26, 2011.

Terms of the Arrangement

Under the terms of the Arrangement Agreement, CUE’s shareholders will
receive 0.0195 of one share of UEC common stock for every one share of
CUE common stock.  With 119,808,067 shares of CUE common stock
outstanding, it is anticipated that approximately 2,336,260 shares of
UEC common stock will be issued to the former CUE shareholders upon
completion of the Arrangement, representing approximately 3.1% of the
issued and outstanding common stock of UEC.

The Boards of Directors of UEC and CUE have each unanimously approved
the Arrangement Agreement and have concluded that the proposed
Arrangement is in the best interests of UEC and CUE, respectively.

In conjunction with the Arrangement Agreement, the directors and
officers of CUE, together with certain additional shareholders of CUE,
have agreed to immediately enter into voting agreements with UEC
pursuant to which they will agree to vote their CUE shares in favor of
the Arrangement.  The CUE shares which are expected to be subject to
voting agreements will represent approximately 51.8% of CUE’s
outstanding common shares as of January 20, 2012.

The Board of Directors of CUE is expected to provide a written
recommendation that the CUE shareholders vote their shares in favor of
the Arrangement in the management information circular to be prepared
and mailed by CUE in connection with the proposed Arrangement.  The
proposed Arrangement will be carried out by way of a court-approved
plan of arrangement and will require the approval of shareholders
holding at least two-thirds of the CUE shares represented in person or
by proxy at a special meeting of CUE shareholders to be called to
consider the Arrangement. In addition to shareholder and court
approvals, the proposed Arrangement is subject to applicable regulatory
approvals and the satisfaction of certain other closing conditions
customary in transactions of this nature.

Further information regarding the Arrangement will be contained in the
management information circular of CUE to be mailed to CUE shareholders
and filed on SEDAR.  The date of the special meeting for shareholders
of CUE is presently expected to take place on or about March 26, 2012,
with closing expected to occur as soon as possible thereafter.  All
shareholders of CUE are urged to read the management information
circular once it becomes available as it will contain additional
important information concerning the proposed Arrangement.

The foregoing description of the Arrangement Agreement is not complete
and is qualified in its entirety by reference to the Arrangement
Agreement which will be filed on each of UEC’s and CUE’s SEDAR profiles
and will be available for viewing at www.sedar.com.

UEC expects to apply to list its shares issuable under the proposed
Arrangement on the NYSE Amex equities exchange on closing. It is
anticipated that the shares of CUE will be delisted from the TSX
Venture Exchange following completion of the Arrangement.

About Uranium Energy Corp.:

Uranium Energy Corp. is a U.S.-based uranium production, development and
exploration company operating North America’s newest emerging uranium
mine.  UEC’s fully licensed and permitted Hobson processing facility is
central to all of its projects in South Texas, including the Palangana
in-situ recovery project, which is ramping up initial production, and
the Goliad in-situ recovery project, which has been granted its Mine
Permit and is in the initial stages of mine construction.

UEC’s operations are managed by professionals with a recognized profile
for excellence in their industry, a profile based on many decades of
hands-on experience in the key facets of uranium exploration,
development and mining.  For detailed information visit UEC’s web site
at www.uraniumenergy.com.

About Cue Resources Ltd.:

Cue Resources Ltd. is focused on its Yuty Uranium Project located in
southeastern Paraguay. This property was extensively explored in the
late 1970′s and early 1980′s, leading to the discovery of significant
uranium mineralization in a roll-front environment. Activities then
ceased with the global fall in uranium prices. Worldwide, projects of
this nature are commonly recoverable through the use of in situ
recovery technology (ISR). Four major drilling campaigns have now been
completed by CUE. For detailed information visit CUE’s web site at www.cue-resources.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Notice to U.S. Investors

The mineral resources referred to herein have been estimated in
accordance with the definition standards on mineral resources of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to in
NI 43-101 and are not compliant with U.S. Securities and Exchange
Commission (the “SEC”) Industry Guide 7 guidelines. In addition,
measured mineral resources, indicated mineral resources and inferred
mineral resources, while recognized and required by Canadian
regulations, are not defined terms under SEC Industry Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. Accordingly, we have not reported them
in the United States. Investors are cautioned not to assume that any
part or all of the mineral resources in these categories will ever be
converted into mineral reserves. These terms have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. In particular, it should be noted that
mineral resources which are not mineral reserves do not have
demonstrated economic viability. It cannot be assumed that all or any
part of measured mineral resources, indicated mineral resources or
inferred mineral resources will ever be upgraded to a higher category.
In accordance with Canadian rules, estimates of inferred mineral
resources cannot form the basis of feasibility or other economic
studies. Investors are cautioned not to assume that any part of the
reported measured mineral resources, indicated mineral resources or
inferred mineral resources referred to in this news release are
economically or legally mineable.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States and
Canadian laws. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans, “estimates”
or “intends”, or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved) are
not statements of historical fact and should be viewed as
“forward-looking statements”. Such forward looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes or
claims limitations on insurance coverage. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved. 
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company’s ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this news release can be found in the Company’s
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement any forward-looking
statements whether as a result of new information, future events or
otherwise.  This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities. 

 


    Investor Relations, Uranium Energy Corp.:                                   A  A  A  A  Robert Tyson, Cue Resources Ltd.:
    Toll Free: (866) 748-1030                                                               Tel: (604) 568-2080
    Fax: (361) 888-5041                                                                     Fax: (604) 684-2990
    E-mail:A info@uraniumenergy.com             E-mail:A rstyson@cue-resources.com

SOURCE Uranium Energy Corp


Source: PR Newswire