U3O8 Corp. Completes Sale of the Laguna Salada Project in Argentina: Focuses on the Berlin Uranium and Battery Commodities Deposit
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Press Release
U3O8 Corp. Completes Sale of the Laguna Salada Project in Argentina: Focuses
on the Berlin Uranium and Battery Commodities Deposit
Toronto, Ontario – December 22, 20 21 – U3O8 Corp. (TSXV: UWE .H), (“U3O8” or the “ Company”)
announces that pursuant to the Option Agreement dated December 14, 2020 (the “ Option Agreement”)
the transfer of the mineral properties that constitute the Laguna Salada Project (“Laguna Salada”) located
in Argentina, has been completed. On December 21, 2021 and upon transfer of the properties comprising
Laguna Salada to Consolidated Uranium Inc. (“CUR”), CUR issued 675,675 common shares in the capital
of CUR (“CUR Shares”) to the Company.
Consideration Paid for the Laguna Salada Project
As consideration for the transfer of Laguna Salada, CUR has issued a total of 731,981 CUR Shares to
U3O8 Corp. and has paid the Company C$275,000. The CUR Shares have been issued in two tranches
at a deemed price of C$2.22 per share as follows:
• 56,306 CUR Shares were issued on June 9, 2021 for a value of C$125,000; and
• 675,675 CUR Shares were issued on December 21, 2021 for a value of C$1,500,000, and these
shares are subject to a four month and one day hold period until April 22, 2022.
The C$2.22 CUR share price represents the five -day volume weighted average price of the CUR Shares
prior to June 9, 2021, being the second business day prior to the exercise of the option to acquire Laguna
Salada.
U3O8 Corp. has further upside exposure to the uranium market in that if, within 10 years from the date of
the Option Agreement, the spot price of uranium reaches US$50 per pound (“/lb”), CUR will pay U3O8 Corp.
C$505,000. Upon the uranium spot price reaching US$75/lb within 10 years from date of the Option
Agreement, CUR will pay U3O8 Corp. a further C$758,000 and on reaching US$100/lb, U3O8 Corp. will
receive an additional C$1,010,000 from CUR.
Berlin Deposit
Apart from uranium for clean, nuclear energy, the Berlin Deposit contains nickel, phosphate and vanadium,
which are battery commodities . P hosphate is a key component of lithium -ion ferric phosphate (“LFP”)
batteries that are being used in BYD’s and Tesla’s e-vehicle models. Nickel is a component of various
lithium-ion batteries, while vanadium is the element used in vanadium redox flow batteries. Neodymium,
one of the rare earth elements included in the Preliminary Economic Assessment undertaken on the Berlin
Deposit (the “Berlin PEA”), is used in the manufacture of powerful magnets that are used to increase the
efficiency of electric motors and in generators in wind turbines.
Next Steps on the Berlin Deposit
The Company has embarked on the second phase of a three -phase comprehensive study to test the
efficiency of membrane technology on reducing operating and capital cost estimates as modelled in the
Berlin PEA. The base of operations is also being strengthened in Colombia.
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,
phosphate and zinc in the Berlin Deposit in Colombia. The Company’s mineral resource estimate was made
in accordance with National Instrument 43 -101. The Berlin PEA showed positive economics and
highlighted areas in which both operating and capital costs could be reduced to enhance the economics of
the deposit. Extensive metallurgical test work showed that revenue streams would be dominated by
uranium, phosphate, nickel, vanadium and rare earth elements, of which only two were considered in the
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economic assessment. Rhenium, another high -value, high-tech element, was also not considered in the
economic assessment.
A PEA is preliminary in nature, it 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 preliminary economic assessment will be realized.
For further information, please contact:
Carolina Diaz at [email protected] or phone (416) 868-1491 or Richard Spencer, President & CEO,
U3O8 Corp., Tel: (647) 292-0225 [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 Berlin Project. 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 completion of a
reactivation transaction or successful reactivation of the Berlin project ; (b) the potential for membrane
technology to lower capital and or operating cost estimates of the Berlin Project , (c) assumptions made in
and results of the Berlin PEA, ( d) the price and market for uranium , battery commodities and rare earth
elements, (e) the future price of uranium and (f) the payments expected to be received by the Company
from CUR which are predicated on the future spot price of uraniu m. These statements are based on
assumptions, including that: (i) the ability to find a profitable undertaking or successfully conclude a
purchase of such an undertaking at all or on terms which are commercially acceptable; (ii) 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 Berlin PEA proves to be accurate,
(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 , battery metals and rare earth elements will continue to strengthen .
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 source commercially viable reactivation transactions and / or 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 inhere nt 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)
the effects of C OVID-19 on the business of the Company, including, without limitation, effect s of COVID-
19 on capital markets, commodity prices, labour regulations, supply chain disruptions and domestic and
international travel restrictions, (9) 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 dated March 27, 2019
for the fiscal year ended December 31, 2018 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 PEA, refer to the January 18,
2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit,
Colombia.”
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 press release.