Nov. 30, 2009 (PR Newswire) --
Acquisition Includes Everest's 1% Interest in the Fully Licensed Hobson
ISR Processing Facility, the Advanced Palangana ISR Project and a
Portfolio of Exploration Properties in South Texas
NYSE Amex Equities Exchange Symbol - UEC
AUSTIN, TX, Nov. 30 /PRNewswire-FirstCall/ - Uranium Energy Corp (NYSE-AMEX: UEC, the "Company") is pleased to announce that it has now entered into a formal asset purchase agreement (the "APA") with Everest Exploration, Inc. ("Everest") to acquire substantially all of the assets of Everest including its 1%-interest in the South Texas Mining Venture, L.L.P. ("STMV"), a Texas limited liability partnership.
This announcement follows the Company's news release on October 14, 2009 of an agreement to purchase 99% of STMV from a subsidiary of Uranium One Inc., and an agreement in principle with Everest to purchase its 1% interest.
To purchase Everest's assets the Company has agreed to issue 200,000 shares of its common stock and to make an aggregate cash payment of $1,000,000 to Everest to be used, in part, for final reclamation of two properties previously mined and restored by Everest. The closing of the APA is subject to a number of conditions including the receipt by both parties of certain consents and releases.
The assets of STMV include the fully licensed and permitted Hobson In-Situ Recovery ("ISR") Processing Plant ("Hobson"), the Palangana Uranium Project ("Palangana"), which is at an advanced stage of permitting, and a portfolio of exploration-stage properties located in South Texas.
The Company plans to use the Hobson facility to shorten the runway to initial low-cost production and to make it the center of a new regional operating strategy for its projects in South Texas. Its Goliad and Nichols, and, after closing, Palangana projects are anticipated to become satellite ISR operations, with loaded resins being transported to Hobson for further processing into dried U3O8, which is known commonly as yellowcake.
Amir Adnani, President and CEO of the Company stated, "The agreement with Everest brings the Company one step closer to completing the acquisition of the STMV assets from Uranium One and Everest. Upon closing the transaction, the Company will also gain control of five additional exploration properties in South Texas, each with recognized uranium mineralization, and each within 100 miles of the licensed Hobson facility. Significant exploration and mining data files are included as well.
