LONDON, UK / ACCESSWIRE / July 12, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Uranium Energy Corp. (NYSE: UEC) ("UEC"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=UEC. The Company announced on July 10, 2017, its decision to exercise its previously disclosed option to acquire all of the issued and outstanding shares of CIC Resources (Paraguay) Inc., a wholly-owned subsidiary of CIC Resources Inc. in accordance with terms and conditions of the Company's share purchase and option agreement (with CIC Resources Inc.) dated March 04, 2016. Consequently, UEC now controls 100% of the Alto Paraná Titanium Project situated in the departments of Alto Paraná and Canindeyú in the Republic of Paraguay. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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No change in UEC's strategic direction
Amir Adnani, President and CEO of UEC, conveyed that the Company has worked on assembling a team of technical and local experts in Paraguay to advance its ISR uranium portfolio over the last 5 years. Although this is UEC's first non-uranium asset, Amir Adnani confirmed that it does not reflect any change in its strategic direction. Instead, it signifies an opportunity to acquire a large, advanced asset within a familiar jurisdiction.
UEC has used its in-country presence and know-how to consolidate over 70,000 hectares to make the Alto Parana titanium project and its pilot plant beneficial for UEC's shareholders. CIC Resources and its former JV partner, Tronox, have invested around $25 million in the Alto Parana project till date. He mentioned that his team at UEC has reviewed these assets and will soon update the market on their go-to-market strategy to create value at Paraná.
This is in-line with UEC's acquisition of the issued and outstanding shares of JDL Resources Inc., a wholly owned subsidiary of CIC, pursuant to the terms of the Share Purchase and Option Agreement, in June 2016. JDL holds additional titanium mineral property concessions that lie adjacent to the Alto Paraná Property.
Deal for an aggregate consideration of $1.02 million
Uranium Energy Corp. has issued to CIC Resources 64,879 restricted common shares (of UEC), at an issuance price of $1.5363 per share, for a total consideration of $1,021,453 in accordance with the terms of the share purchase agreement.
This consideration includes:
- UEC's option exercise payment of $275,000; and
- UEC's reimbursement to CIC for all property maintenance costs incurred since execution of the Share Purchase and Option Agreement
Furthermore, UEC has also granted CIC a 1.5% net smelter returns royalty on the Property. This gives it the right to acquire 0.5% of the Royalty at a purchase price of $500,000 at any time for a period of six years following the exercise of the Option.
About Alto Paraná Titanium Project
The Alto Paraná Titanium Project is located in eastern Paraguay, within the department of Alto Paraná, around 100 km north of Ciudad del Este. It is an advanced exploration stage project. The property runs over an area of 70,498 hectares and covers five mining permits granted by the Ministry of public works and Communications, Paraguay. Moreover, the project is located near Itaipu, which is the second largest hydroelectric dam in the world and a great source of cost-effective power. Work done on the property so far includes pitting and auger drilling, development of a small test mine, construction of a pilot plant to evaluate the proposed beneficiation flow sheet, bench scale smelting tests, production of about 110 tons of concentrate for a large scale smelting tests and associated engineering, marketing, logistical, and environmental work.
The property will be released before the end of 2017. Meanwhile, UEC is working on preparing the proposed NI43-101 Technical Report and on unlocking the value of these acquisitions.
Deal leads to a rise in ilmenite prices
Titanium can be alloyed with iron, aluminum, vanadium, and molybdenum, among other elements, to produce strong, lightweight alloys for aerospace applications such as jet engines, missiles, and spacecraft. Of the mined titanium minerals, 5% is used to produce titanium metal while the remaining 95% is used for manufacturing pure titanium dioxides. Titanium dioxide has several uses – it is the pigment that enhances brightness and opacity in paints and inks, paper, and plastics, and even in food products and cosmetics; it is also the metal used in the body of Apple's Mac Book line. From a commercial perspective, ilmenite, the main source of titanium dioxide, is the most important ore of titanium. When UEC executed this Share Purchase and Option Agreement, i.e. the end of 2015 or early 2016, spot ilmenite prices touched US$60/t, whereas ilmenite bulk concentrate is now priced at approximately US$178/t.
About Uranium Energy Corp.
Uranium Energy Corp. is a US-based uranium mining and exploration Company. It's Hobson Processing Facility is central to all of its projects in South Texas, including the Palangana ISR mine, the permitted Goliad ISR project and the development-stage Burke Hollow ISR project. The Company also controls a pipeline of advanced-stage projects in Arizona, Colorado, and Paraguay. Its operations are managed by professionals who have a recognized profile for excellence in their industry, based on many decades of hands-on experience in many facets of uranium exploration, development, and mining.
Last Close Stock Review
At the closing bell, on Tuesday, July 11, 2017, Uranium Energy's stock was marginally down 0.59%, ending the trading session at $1.69. A total volume of 1.27 million shares has exchanged hands. The Company's stock price skyrocketed 14.19% in the last three months, 25.19% in the past six months, and 83.52% in the previous twelve months. Moreover, the stock soared 50.89% since the start of the year. The stock currently has a market cap of $234.35 million.
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