Uranium Energy Corp Completes Sale of Interest in Cebolleta Uranium Project in New Mexico for $11 Million
Uranium Energy Corp (NYSE-AMEX: UEC, the "Company") is pleased to announce that the Company has received a cash payment of US$11,000,000 as complete consideration for the sale of the Company's 49%-interest in Cibola Resources LLC (the "LLC") to Neutron Energy, Inc. ("Neutron"), a Nevada corporation. Neutron has exercised its option (the "Option") to make this purchase in accordance with an option agreement between the Company and Neutron announced November 12, 2009, which was subsequently extended.
Amir Adnani, President and CEO, stated:
"We are very pleased to complete this transaction. As a consequence, the Company's balance sheet is now in a strong position with working capital of over $26 million and no debt. The plan is to apply the proceeds from the sale directly to expand the Company's major opportunity in Texas where we are effecting a regional strategy of developing satellite ISR uranium projects to feed the Company's fully-licensed Hobson central processing plant."
Harry Anthony, Chief Operating Officer, added:
"At present we are aggressively carrying through near-term production strategies at the Company's Palangana and Goliad ISR uranium projects and, with this additional cash infusion, we anticipate that we have sufficient resources to complete these production plans. At Palangana, which is fully permitted, we are actively expanding the resource base while continuing to perform engineering studies related to production. Concurrently, the Company is moving through the final stages of mine permitting at our Goliad ISR project. Uranium recovered from both sites will feed our central processing plant at Hobson."
Until Neutron's exercise of the Option, the Company and Neutron had been parties to a Limited Liability Company Members' Agreement and a Limited Liability Company Operating Agreement (collectively, the "LLC Agreements"), both made as of April 26, 2007, relating to the formation, operation and governance of the LLC under the Delaware Limited Liability Company Act. The LLC holds interests in certain real estate, surface and mineral fee interests in, and technical and financial data pertaining to, the South L Bar Tract and the St. Anthony Tract, covering 6,717 acres located in Cibola County, New Mexico, and collectively known as the Cebolleta uranium project.
Published 14/04/2010
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