U3O8 Corp. Receives Uranium Price Related Payment in CUR Shares
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36 Toronto Street T: 416-868-1491
Suite 1050 www.u3o8corp.com
Toronto, ON M5C 2C5 NEX: UWE.H
Canada
Press Release
U3O8 Corp. Receives Uranium Price Related Payment in CUR Shares
Toronto, Ontario – April 11, 2022 – U3O8 Corp. (NEX: UWE.H), (“U3O8” or the “Company”) is pleased to
announce an additional payment in shares related to the sale , in 2021, of the Laguna Salada Deposit in
Argentina, to Consolidated Uranium Inc. (“CUR”).
U3O8 has received 728,981 CUR common shares in relation to the sale of Laguna Salada. Those shares
have a current market value of C$1, 895,351 (based on the April 8, 2022, closing price of C$2.60 per
common share ). In addition, U3O8 Corp. received 157,213 common shares in Labrador Uranium Inc.
(“LUR”), a company that was spun out by CUR on February 22, 2022 . The market value of the se LUR
shares is C$179,223 based on the April 8, 2022, closing price of C$1.14.
As part of the Laguna Salada sale, U3O8 is eligible to receive further payments from CUR contingent on
the uranium spot price exceeding certain thresholds.
Contingent Payments
The option agreement for the Laguna Salada Deposit (U3O8 Corp. press release dated December 22, 2021)
contained a provision for further payments to be made when the uranium spot price reached and remained
above certain thresholds for 30 days or more. The contingent payments are as follows:
• C$505,000 on the uranium price exceeding US$50 per pound. This condition was met at the end
of March 2022, which triggered this contingent payment in CUR shares.
• C$758,000 on the uranium price exceeding US$75 per pound (or C$250,000, at U3O8’s election,
when the uranium price exceeded US$50 per pound).
• C$1,010,000 on the uranium price exceeding US100 per pound (or C$250,000, at U3O8’s election,
when the uranium price exceeded US$50 per pound).
U3O8 Corp.’s board has elected to receive the accelerated payment related to the US$75 per pound and
US$100 per pound thresholds, for an additional value of C$500,000 now, rather than wait for the uranium
price to reach those higher thresholds. The decision is based on the opinion that the additional CUR shares
are of great value now as U3O8 is concluding an internal reorganization, details of which will be announced
shortly.
The calculation of the CUR share price used in the issue of the C$1,005,000 share-based payment is
$2.684, the weighted average price of CUR shares in the five days up to, and including, March 31, 2022.
Hence, this payment will be made through the issuance of 374,441 CUR shares. On the issuance of these
shares, U3O8 Corp. will hold 1,103,442 common shares of CUR and 157,213 common shares of LUR.
About U3O8 Corp.
U3O8 Corp. is focused on the development of the Berlin Deposit in Colombia. Apart from uranium for clean,
nuclear energy, the Berlin Deposit contains battery commodities; nickel, phosphate and vanadium.
Phosphate is a key component of lithium-ion ferro-phosphate (“LFP”) batteries that are being used by BYD,
Tesla and a growing li st of electric vehicle manufacturers. 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 contained within the Berlin Deposit , is a key component of powerful magnets that are
used to increase the efficiency of electric motors and in generators in wind turbines.
The Company’s mineral resource estimate for the Berlin Deposit was made in accordance with National
Instrument 43-101. The preliminary economic assessment (“PEA”) on the Berlin Deposit 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 reve nue streams would be
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dominated by uranium, phosphate, nickel, vanadium and rare earth elements, of which only two were
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:
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, expectatio ns 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 increase the effic iency of metal and phosphate extraction on 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 assumpt ions 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) fi nancial 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 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) 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 informa tion 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.