Vancouver – With 99.89% of cast votes giving a thumbs up, shareholders of UrAsia Energy (UUU-V, UAEYF-O, UUU-L) overwhelmingly endorsed sxr Uranium One‘s (SXR-T, SXR-J) friendly deal to acquire the company.
The plan of arrangement sees Uranium One issuing 0.45 of a common share for each UrAsia share upon closing of the deal that is expected by mid-April pending final court regulatory approvals. In taking up all 518.7 million shares (on a fully diluted basis) of UrAsia, Uranium One will end up issuing about 233.4 million new shares.
The merger will see shareholders of UrAsia holding about 60% of the combined company while current Uranium One shareholders will retain about 40%.
UrAsia reports current annual production of about 1.8 million lbs. U3O8 and will contribute its main asset: acquisition rights for 70% of the Betpak-Dala joint venture that owns the in-situ leach (ISL) Akdala uranium mine and the South Inkai ISL development project in south-central Kazakhstan. It is partnered with the Kazakhstan state-owned uranium producer NAC KazAtomProm.
Akdala holds proven and probable reserves of 13.1 million tonnes grading 0.057% uranium attributable to UrAsia, about 19.4 million contained lbs. U3O8. South Inkai contains an attributable inferred resource of 40.4 million tonnes of 0.043% uranium (43.5 million contained lbs. U3O8).
Additionally, UrAsia has rights to acquire 30% of the North Kharassan uranium project under development as an ISL operation in southern Kazakhstan. The property contains a resource of 2.6 million indicated tonnes of 0.2% uranium and 30.5 million inferred tonnes of 0.095% uranium.
The company also has a number of uranium exploration projects in the Kyrgyz Republic.
Uranium One’s flagship operation is its Dominion uranium mine in South Africa that recently commenced operations. The deposit hosts probable reserves of 18.5 million tonnes grading 0.077% U3O8 (31.3 million contained lbs.), an indicated resource of 26 million tonnes at 0.083% U3O8 (47.5 million contained lbs.) plus 178.4 million inferred tonnes grading 0.05% U3O8 (about 199 million contained lbs.). Dominion ore also contains a precious metal component averaging about one gram gold per tonne.
It is also holds the Honeymoon project in South Australia, a permitted, advanced in-situ leach project with production scheduled for 2008. The project contains a resource of 1.2 million indicated tonnes at 0.24% U3O8 or about 6.5 million contained lbs of U3O8. Exploration is also underway on additional uranium projects in South Australia
Uranium One also holds about 71.4% of Aflease Gold, that owns the Modder East gold project in South Africa scheduled to commence production in 2009, and is joint ventured with Pitchstone Exploration (PXP-V, PEXPF-O) on a number of Athabasca Basin properties.
The new Uranium One will become one of the larger public companies in the uranium field, posting a market capitalization of well over $6 billion based on recent trading levels of $18.30 per share for sxr Uranium One and $8.14 per share for UrAsia.
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