11:54:24 EDT Sun 07 Aug 2022
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or Name

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UEX Corp
Symbol UEX
Shares Issued 544,934,502
Close 2022-08-05 C$ 0.48
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UEX receives sweetened offer from Uranium Energy

2022-08-05 22:35 ET - News Release

Mr. Roger Lemaitre reports


UEX Corp. has entered into an amendment to the arrangement agreement dated June 13, 2022, as amended June 23, 2022, among Uranium Energy Corp., UEC 2022 Acquisition Corp. and UEX. Pursuant to the amended UEC agreement, the purchaser, a wholly owned subsidiary of UEC, will acquire all of the issued and outstanding common shares of UEX pursuant to a statutory plan of arrangement under the Canada Business Corporations Act, and in return, UEX shareholders will receive, for each UEX share held, 0.0890 of one share of UEC as consideration.

The following represents a summary of the key amendments set forth in the amended UEC agreement:

  • UEX shareholders will now receive 0.0890 UEC share for each UEX share, implying consideration of approximately 49 cents per UEX share based on the closing price of UEX shares and UEC shares on the Toronto Stock Exchange and the NYSE American Exchange, respectively, and the spot exchange rate as of the date hereof, replacing the original exchange ratio of 0.0831 UEC share for each UEX share as agreed to in the UEC agreement.
  • An increase in the termination fee payable to UEC if the UEC agreement is terminated in certain circumstances, including if UEX enters into an agreement with respect to a superior proposal or if the board of directors of UEX withdraws its recommendation with respect to the UEC arrangement, from $8.25-million (U.S.) to $8.8-million (U.S.).

The company confirms that the UEX special meeting of securityholders currently slated for 10 a.m. Vancouver time on Aug. 9, 2022, will continue as scheduled. No further action is required by UEX shareholders who have already voted if there is no change to your vote.

All terms and conditions of the UEC agreement not modified by the amended UEC agreement remain unchanged. For further details with respect to the material terms of the UEC agreement, please refer to the joint press release of UEX and UEC dated June 13, 2022, and the UEC agreement which, together with the amended UEC agreement, will be available on the company's SEDAR profile.

About UEX Corp.

UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects.

UEX's directly owned portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca basin, the world's richest uranium region, which, in 2020, accounted for approximately 8.1 per cent of the global primary uranium production. In addition to advancing its uranium development projects through its ownership interest in JCU, UEX is currently advancing several other uranium deposits in the Athabasca basin, which include the Paul Bay, Ken Pen and Orora deposits at the Christie Lake project, the Kianna, Anne, Colette and 58B deposits at its currently 49.1-per-cent-owned Shea Creek project, the Horseshoe and Raven deposits located on its 100-per-cent-owned Horseshoe-Raven project, and the West Bear uranium deposit located at its 100-per-cent-owned West Bear project.

UEX is also 50/50 co-owner of JCU (Canada) Exploration Company Ltd. JCU's portfolio of projects includes interests in some of Canada's key future uranium development projects, notably a 30.099-per-cent interest in Cameco's Millennium project, a 10-per-cent interest in Denison's Wheeler River project and a 33.8123-per-cent interest in Orano Canada's Kiggavik project, located in the Thelon basin in Nunavut, as well as minority interests in nine other grassroots uranium projects in the Athabasca basin.

UEX is also leading the discovery of cobalt in Canada, with three cobalt-nickel exploration projects located in the Athabasca basin of Northern Saskatchewan, including the only primary cobalt deposit in Canada. The 100-per-cent-owned West Bear project hosts the West Bear cobalt-nickel deposit, the newly discovered Michael Lake copper-nickel zone and the West Bear uranium deposit. UEX also owns 100 per cent of two early-stage cobalt exploration projects, the Axis Lake and the Key West projects.

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