TORONTO, Nov. 16, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") is pleased to outline how the offer of a C$1 million line of credit by the Company's
founder and director, Dr. Keith
Barron, in addition to funds recently raised by the Company,
will be used to undertake proof-of-concept work on its Laguna
Salada uranium-vanadium deposit in Argentina. The funds allow
the Company to do specific test work that, if successful, is likely
to significantly improve the economics of Laguna Salada by lowering
operating and capital costs from those determined in the positive
preliminary economic assessment ("PEA") undertaken in
2014.
"I believe that there is a clear path for U3O8 Corp. to become a
uranium and vanadium producer from the Laguna Salada Deposit," said
Dr. Keith Barron. "To help
U3O8 Corp. achieve that goal, I have pledged to support the Company
with a convertible debt facility of up to C$1 million to be paid back in shares in a
maximum of three years. I cannot think of a more concrete way
to demonstrate my faith in the Company: I will finance the Company
at a zero-interest rate and will only be repaid in shares in the
future when the share price is likely to have strengthened on the
back of successful proof-of-concept test work."
"The monies will be used to finance proof-of-concept production
tests. In addition, I have released my Manager of Operations
at the Potentate Sapphire Mine in Montana – where we process gravel to recover
gemstones - to U3O8 Corp. on a temporary basis. John Rae is a Mining Engineer who will draw on
his extensive experience to optimize the screening and washing of
gravel at Laguna Salada to ensure that its mineralization is
concentrated in the most cost-effective way. This pilot-scale
test work will use standard road-building and alluvial mining
equipment sourced from local operators and repurposed in a
cost-effective way. U3O8 Corp.'s Director, David Marsh, who was instrumental in the design
and operation of the uranium processing plant at the Langer
Heinrich mine in Namibia, is
refining plans for our test work program. Dave is uniquely
qualified to oversee and dynamically adapt the test work program as
results become available."
"I am bullish long-term on uranium and vanadium prices.
Cameco's announcement last week, to cut production from some of its
biggest, highest-grade operations in Canada, unequivocally makes the point that the
current low uranium price is unsustainable. Cameco's
production cut, combined with those from other producers like
KazAtomProm, go a long way towards eliminating the current
over-supply to the market and should be a key factor in
strengthening the uranium commodity price. However, until
there is sustained strength in uranium equities, I will stand
behind U3O8 Corp. We will use the significant funds that may
otherwise be spent on additional NI43-101 reports, to complete
proof-of-concept test work. Our CFO will carefully monitor
the real costs of our proof-of-concept program and make them
transparent to shareholders in our quarterly filings. My
personal goal is to fast-track the Laguna Salada Project to
demonstrate that we can supply the current nuclear needs of
Argentina, as well as the forecast
requirements from the Argentine-designed and built small modular
reactor."
For further details on Argentina's electricity generation from large
nuclear reactors, as well as its prototype small modular reactor
that represents a prime export opportunity, please see the
Corporate Presentation accessible on the homepage of our website
http://www.u3o8corp.com.
Technical Information
Cautionary Note: A PEA is preliminary in nature, and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the results of the PEA
assessment will be realized.
Dr. Richard Spencer, P.Geo.,
CGeol., President and CEO of U3O8 Corp. and a Qualified Person as
defined by National Instrument 43-101, has approved the technical
information in this news release relating to the Laguna Salada
Deposit and the related PEA.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits
of uranium and battery commodities in South America. Battery
commodities that occur with uranium resources include vanadium,
nickel, zinc and phosphate. The Company's mineral resources
estimates were made in accordance with National Instrument 43-101,
and are contained in three deposits:
- Laguna Salada Deposit, Argentina – a PEA shows this near surface,
free-digging uranium - vanadium deposit has low production-cost
potential;
- Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production
potential due to revenue that would be generated from by-products
of phosphate, vanadium, nickel, rare earths (yttrium and neodymium)
and other metals that occur within the deposit; and
- Kurupung Deposit, Guyana – a uranium resource has been
estimated in four veins within a uranium-zirconium vein
system. Resources have been estimated on four veins, while
consistent mineralization of the same type has been intersected in
scout drilling of an additional six veins, while yet other veins
require first-time exploration drilling.
Information on U3O8 Corp., its resources and technical reports
are available at www.u3o8corp.com and on SEDAR at
www.sedar.com. Follow U3O8 Corp. on Facebook:
http://www.facebook.com/u3o8corp, Twitter:
http://www.twitter.com/u3o8corp and YouTube:
http://www.youtube.com/u3o8corp.
Forward-Looking Statements
This news release includes
certain "forward looking statements" related with the development
plans, economic potential and growth targets of U3O8 Corp's
projects. Forward-looking statements consist of statements that are
not purely historical, including statements regarding beliefs,
plans, expectations or intensions for the future, and include, but
not limited to, statements with respect to: (a) the low-cost and
near-term development of Laguna Salada, (b) the Laguna Salada and
Berlin PEAs, (c) the potential of the Kurupung district in Guyana,
(d) impact of the U- pgradeTM process on expected capital and
operating expenditures, and (e) the price and market for uranium.
These statements are based on assumptions, including that: (i)
actual results of our exploration, resource goals, metallurgical
testing, economic studies and development activities will continue
to be positive and proceed as planned, and assumptions in the
Laguna Salada and Berlin PEAs prove to be accurate, (ii) a joint
venture will be formed with the provincial petroleum and mining
company on the Argentina project, (iii) requisite regulatory and
governmental approvals will be received on a timely basis on terms
acceptable to U3O8 Corp., (iv) economic, political and industry
market conditions will be favourable, and (v) financial markets and
the market for uranium will improve for junior resource
companies in the short-term. Such statements are subject to risks
and uncertainties that may cause actual results, performance or
developments to differ materially from those contained in such
statements, including, but not limited to: (1) changes in general
economic and financial market conditions, (2) changes in demand and
prices for minerals, (3) the Company's ability to establish
appropriate joint venture partnerships, (4) litigation, regulatory,
and legislative developments, dependence on regulatory approvals,
and changes in environmental compliance requirements, community
support and the political and economic climate, (5) the inherent
uncertainties and speculative nature associated with exploration
results, resource estimates, potential resource growth, future
metallurgical test results, changes in project parameters as plans
evolve, (6) competitive developments, (7) availability of future
financing, (8) exploration risks, and other factors beyond the
control of U3O8 Corp. including those factors set out in the
"Risk Factors" in our Annual Information Form available on SEDAR at
www.sedar.com. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
U3O8 Corp. assumes no obligation to update such information, except
as may be required by law. For more information on the above-noted
PEAs, refer to the September 18, 2014 technical report titled
"Preliminary Economic Assessment of the Laguna Salada
Uranium-Vanadium Deposit, Chubut Province, Argentina" and the
January 18, 2013 technical report titled "U3O8 Corp. Preliminary
Economic Assessment on the Berlin Deposit, Colombia."
SOURCE U3O8 Corp.