(TheNewswire)
Recommends Vote i nFavour o f UEC Arrangement
Saskatoon, Saskatchewan – TheNewswire - August 15, 2022 – UEX Corporation(TSX:UEX) (OTC: UEXCF) (“ UEX ” or the “ Company ”) is pleasedto announce that it has entered into a further amendment (the“ Amended UECAgreement ”) to the arrangement agreement datedJune 13, 2022, as amended June 23, 2022 and August 5, 2022 amongUranium Energy Corp. (“ UEC ”), UEC 2022 Acquisition Corp. (the“ Purchaser ”) and UEX (the “ UEC Agreement ”). Pursuant to the Amended UECAgreement, the Purchaser, a wholly-owned subsidiary of UEC, willacquire all of the issued and outstanding common shares of UEX (the“ UEX Shares ”) pursuant to a statutory plan of arrangement under the Canada business CorporationsAct , and in return UEX shareholders(“ UEXShareholders ”) will receive, for each UEXShare held, 0.09 of one share of UEC (“ UEC Shares ”) asconsideration (the “ UECArrangement ”).
The following represents a summary of the keyamendments set forth in the Amended UEC Agreement:
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UEX Shareholders will now receive 0.09 UEC Shares foreach UEX Share, implying consideration of approximately C$0.497 perUEX Share based on the closing price of UEX Shares and UEC Shares onthe Toronto Stock Exchange and the NYSE American Exchange,respectively, and the spot exchange rate as of August 12,2022 , replacing the previous exchange ratio of0.0890 UEC Shares for each UEX Shares as agreed to in the UECAgreement; and
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a further increase in the termination fee payable toUEC if the UEC Agreement is terminated in certain circumstances,including if UEX enters into an agreement with respect to a superiorproposal or if the Board of Directors of UEX (the Board ”) withdrawsits recommendation with respect to the UEC Arrangement, fromUS$8,800,000 to US$9,000,000.
The Board, after receiving guidance from our Advisors,approved the Amended UEC Agreement early today after consideration ofa further offer received from Denison Mines Corp. in the late eveningyesterday.
The Company confirms that the UEX special meeting ofsecurityholders (the “ Meeting ”) currently slated for 10:00 a.m.(Vancouver time) on Monday, August 15, 2022 will continue asscheduled. Preliminary results from the Meetingindicate that over 93% of the votes cast on the special resolutionapproving the UEC Arrangement have been voted in favour of the UECArrangement. No further action is required by UEX securityholders who have already voted ifthere is no change to your vote.
The Board unanimously recommendsthat the UEX securityholders vote in favour of the resolution toapprove the UEC Arrangement pursuant to the UEC Arrangement Agreement,as amended by the Amended UEC Agreement, at the Meeting.
All terms and conditions of the UEC Agreement notmodified by the Amended UEC Agreement remain unchanged. For furtherdetails with respect to the material terms of the UEC Agreement,please refer to the press release of UEX dated June 13, 2022 andAugust 5, 2022, and the UEC Agreement which, together with the AmendedUEC Agreement, will be available on the Company’s SEDAR profile on www.sedar.com .
About UEX
UEX is a Canadian uranium and cobalt exploration anddevelopment company involved in an exceptional portfolio of uraniumprojects.
UEX’s directly-owned portfolio of projects is locatedin the eastern, western and northern perimeters of the AthabascaBasin, the world's richest uranium region which in 2020 accounted forapproximately 8.1% of the global primary uranium production. Inaddition to advancing its uranium development projects through itsownership interest in JCU, UEX is currently advancing several otheruranium deposits in the Athabasca Basin which include the Paul Bay,Ken Pen and ?rora deposits at the Christie Lake Project , the Kianna,Anne, Colette and 58B deposits at its currently 49.1%-owned Shea CreekProject, the Horseshoe and Raven deposits located on its 100%-ownedHorseshoe-Raven Project and the West Bear Uranium Deposit located atits 100%-owned West Bear Project.
UEX is also 50:50 co-owner of JCU (Canada) ExplorationCompany, Limited (“JCU”). JCU’s portfolio of projects includesinterests in some of Canada’s key future uranium developmentprojects, notably a 30.099% interest in Cameco’s Millennium Project,a 10% interest in Denison’s Wheeler River Project, and a 33.8123%interest in Orano Canada’s Kiggavik Project, located in the ThelonBasin in Nunavut, as well as minority interests in nine othergrassroots 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 AthabascaBasin of northern Saskatchewan, including the only primary cobaltdeposit in Canada. The 100% owned West Bear Project hosts the WestBear Cobalt-Nickel Deposit, the newly discoveredMichael Lake Co-Ni Zone, and the West Bear Uranium Deposit. UEX alsoowns 100% of two early-stage cobalt exploration projects, the AxisLake and Key West Projects.
For further information, pleasecontact:
Roger Lemaitre
President & CEO
(306) 979-3849
www.uexcorp.com
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