U3O8 Corp. Announces Closing of Private Placement & Commitment by Shareholder to Fund the Company to Achieve Key Milestones
36 Toronto Street T: 416-868-1491
Suite 1050 www.u3o8corp.com
Toronto TSX: UWE
ON, M5C 2C5 OCTQB: UWEFF
Canada
Press release
U3O8 Corp. Announces Closing of Private Placement & Commitment by
Shareholder to Fund the Company to Achieve Key Milestones
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario – November 2nd, 2017 – U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF or temporarily
UWEFD) (“U3O8 Corp.” or the “Company”) reports that the Company raised gross proceeds of C$517,000
in a private placement that closed yesterday . Meanwhile, Dr. Keith Barron, founder, director and
shareholder of U3O8 Corp. , has offered to provide a C$1.0 million unsecured operating line of credit to
enable U3O8 Corp. to generate proof of concept uranium and vanadium products from the Laguna Salada
Deposit.
Dr. Keith Barron commented, “I believe that the market cap of U3O8 Corp. has fallen to levels well below
the value of the Laguna Salada Deposit, let alone the Company’s other assets. Laguna Salada has a low-
cost uranium production profile , is located in a country that needs uranium to fuel its expanding nuclear
electricity program, and would produce by -product vanadium into a market that has fallen in to long-term
deficit. Raising equity funds to advance Laguna Salada at these share prices is simply too dilutive to
existing shareholders and therefore I am willing to provide a financing facility to assist the Company through
this period of low uranium commodity prices.”
U3O8 Corp.’s President and CEO, Dr Richard Spencer commented, “Keith’s offer is extremely generous to
the Company and its shareholders . This additional funding comes as a result of Keith having spent
considerable time at Laguna Salada where he gained first-hand knowledge of the Deposit’s potential. Keith
is offering the funds required to complete proof of concept work on the Deposit, while only being repaid in
shares after the Project has been significantly de-risked.”
Current Private Placement
The Company raised gross proceeds of C$517,000 through the issue of 2,068,000 units (“Unit”), with each
Unit priced at C$0.25, consisting of a common share (“Common Share”) and one half of one common share
purchase warrant (“Warrant”). Each of the 1,034,000 Warrants issued has a term of 30 months and a strike
price of C$0.35 to acquire one Common Share. All securities issued and issuable pursuant to the private
placement will be subject to a four-month statutory hold period.
Financing Going Forward
Dr. Keith Barron has offered to provide an unsecured operating line of credit for up to C$1 million at a zero-
interest rate – a facility to be drawn upon on an as-needed basis, to be paid back in stock within three years,
as a debt settlement subject to regulatory approval . The objective of making this facility available to the
Company is to ensure that the Company may advance the Laguna Salada Deposit towards a feasibility
study without exce ssive dilution that would res ult from the funds being raised from a private placement
made at current share prices.
Dr. Barron is a d irector of the Company and therefore, an “insider”, under applicable securities laws. The
provision of an operating line of credit by an insider is considered a "related party transaction" as such term
is defined under MI 61-101. The Company is relying on exemptions from the formal valuation and minority
shareholder approval requirements provided under MI 61-101 on the basis that the principal amount of the
line of credit does not exceed 25% of the fair market value of the Company's market capitalization .
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Use of Proceeds
The positive preliminary economic assessment (“PEA”) that was completed on Laguna Salada in 2014
identified specific parts of the process flow sheet that had higher capital and/or operating costs than
anticipated. Finding alternatives for those specific anomalies provides a compelling opp ortunity to lower
both operating and capital costs, which are likely to significantly improve the economics of the Project. The
Company’s management team, bolstered by the recent appointment of David Marsh to the Board, with his
deep experience in uranium processing plant design and optimization, has been studying alternatives that
it is now ready to test. The current and proposed financing will be used to fund that work program, details
of which will be issued in a press release shortly. Results of th e planned test work will be released as
relevant information becomes available over the next six to nine months.
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.
For further information, please contact:
Richard Spencer, President & CEO, U3O8 Corp. Tel.: (416) 868-1491 [email protected]
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. Fo rward-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
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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 d emand 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 para meters 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 Assess ment 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.”