Update on UrAmerica Limited

RNS Number : 4399R

URU Metals Limited

03 November 2011

 



For immediate release                                                                                                        3 November 2011

URU METALS LIMITED

("URU Metals" or "URU" or "the Company")

Update on UrAmerica Limited

("UrAmerica")

The Board of URU Metals is pleased to provide an update on the Company's investment UrAmerica, the private exploration company with large-scale uranium exploration permits in Argentina, Paraguay and Colombia. The Company has been informed that UrAmerica has entered into a strategic alliance agreement with Cameco Global South America Inc. ("Cameco"), which has subscribed US$10 million for a 19.9 per cent. interest in UrAmerica. Further details of UrAmerica, the strategic alliance with Cameco and the subscription are available on UrAmerica's website at www.uramerica.co.uk. Following completion of the Cameco subscription, the Company's interest in UrAmerica has been diluted to approximately 7.36 per cent.

Highlights

·    Cameco has subscribed for new ordinary shares of UrAmerica, at a subscription price of US$ 0.8365 per UrAmerica share, following which Cameco has an interest in UrAmerica of 19.9 per cent. Based on the Cameco subscription, UrAmerica's issued ordinary share capital would be valued at approximately US$50 million and URU's diluted interest in UrAmerica at approximately US$3.7 million.

·    A joint technical committee ("JTC"), comprised of two members from Cameco and two members from UrAmerica, has been created to manage and approve the use of proceeds from Cameco's subscription for UrAmerica's exploration program.  The JTC has approved an initial 12-month drilling program of 30,000 meters, focused on 7 drill targets, surrounding and close to the National Commission of Atomic Energy's "Cerro Solo Deposit".

·    The Cameco subscription also gives Cameco the exclusive right to acquire 70 per cent. of each deposit discovered by UrAmerica, within all of the mining rights currently operated by UrAmerica in the San Jorge Basin, Chubut Province, Argentina for a payment per pound of U3O8, identified as a mineral resource or mineral reserve, based on the variable spot price. UrAmerica will retain the remaining 30 per cent. of the deposits. 

Paul Loudon, Non-Executive Chairman of URU Metals, said:

 "The decision by Cameco, one of the world's major uranium mining companies, to enter into a strategic alliance with UrAmerica, a company in which we have a 7.36% diluted interest, demonstrates the potential of  UrAmerica's South American portfolio of uranium assets. We look forward to further progress as Caemco and UrAmerica advance exploration in the highly prospective San Jorge uranium district." 

For further information:

URU Metals

Paul Loudon (Chairman)

Tel: [phone]

Beaumont Cornish Limited (Nominated Adviser)

Michael Cornish

Tel: [phone]

Daniel Stewart & Company (Broker)

Sean Lunn

Tel: [phone]

Brand: Mining IR

Dr Iestyn Adams / André Morrall

Tel: [phone]

Forward-Looking Statements:

This press release contains statements that are 'forward-looking'. Generally, the words 'expect,' 'intend,' 'estimate,' 'will' and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are 'forward looking' statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

These forward-looking statements speak only as of the date they are made.

 

END

 

 

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