UEX increases funds for uranium hunt

Vancouver – UEX Corporation (UEX-T) has closed $4.25 million in flow-through financing to fund exploration and development of its Athabasca Basin uranium projects in northern Saskatchewan.

This most recent financing, in addition to the $5 million raised in April, puts the company’s bank account at over $11 million. The robust treasury is earmarked for an ambitious exploration program on a number of UEX’s projects in the uranium district.

Earlier this year, the company signed an agreement to acquire 49% interest in eight of COGEMA Resources’ western Athabasca Basin uranium projects. UEX must fund $30 million in exploration over 11 years.

The upcoming summer-fall program is expected to include exploration on all projects and delineation drilling at the Anne and Colette deposits, part of the Shea Creek deposit.

In the early 1990s, COGEMA discovered Shea Creek, in the western portion of the basin, as an exploration effort to increase the resource near the Cluff Lake mine. There have been 159 drill holes on deposit from 1992 to 2000, the majority of which intersected uranium mineralization.

World uranium prices continue to set multi-decade highs as power generation demand soars. The latest spot price (May 2004) is US$17.85 per lb. U3O8.

UEX was formed in 2002, by an agreement between Pioneer Metals (PSM-T) and Cameco (CCO-T), as a public uranium exploration company focused on the Athabasca Basin. Pioneer transferred all of its uranium projects to UEX for 46.5 million shares that were redistributed to shareholders. Cameco transferred its advanced stage Hidden Bay project in exchange for 31 million shares, making them the largest stakeholder in the company.

This latest financing by UEX was priced at $0.75 per share. Investors have recently been trading the equity in the 60-65 a share range. As of the latest figures, the company has 132.6 million shares outstanding.