TORONTO, ONTARIO -- (Marketwire) -- 03/11/13 -- U3O8 Corp. (TSX: UWE)(OTCQX: UWEFF), a Canadian-based company focused on exploration and resource expansion of uranium and associated commodities in South America, has signed a definitive agreement to acquire all of the shares of Calypso Uranium Corp. ("Calypso"). The acquisition will expand U3O8 Corp's strategic land position around the state-owned Cerro Solo and Sierra Pintada uranium deposits in Argentina and adds about $3.3 million in cash in exchange for 20,252,327 common shares of U3O8 Corp.
Strategic benefits of the combined U3O8 Corp. and Calypso entity include:
-- Increases strategic land position in an emerging uranium district - Calypso's exploration tenements extend U3O8 Corp's strategic property holdings in the vicinity of the Cerro Solo deposit in Chubut that is currently being drilled by the Argentine State. Our view is that the Cerro Solo deposit is part of a larger uranium district as underscored by Cameco's recent commitment to ongoing drilling in a 30,000-metre drill program underway with its joint venture partner in the area;-- Augments dominant land position around Argentina's largest past- producing uranium mine - Calypso's exploration concessions in the Sierra Pintada uranium district in Mendoza dove-tail with U3O8 Corp's already dominant land holdings there, and the combined entity will control the property extensions to Argentina's largest and highest grade uranium deposit;-- Strong growth profile for resource expansion - Calypso shareholders will join a fast-growing uranium company that has increased its uranium resources 7-fold since 2010 with clear potential to continue similar resource growth in Colombia, Argentina and Guyana;-- Potential low-cost uranium producers emerging in Colombia and Argentina - A recent preliminary economic assessment ("PEA") shows that U3O8 Corp's flagship Berlin deposit in Colombia could be a zero cash cost uranium producer thanks to by-product revenues. In addition, a PEA is underway on U3O8 Corp's near surface Laguna Salada uranium-vanadium deposit in Chubut, Argentina that contemplates low-cost continuous mining techniques;-- Strengthened balance sheet - Approximately $4.5 million in cash to fund exploration and enhance the economics of the PEA's by optimizing process flow sheets and infrastructure costs; and-- Solidifies position as the leading uranium exploration company in a growing nuclear energy producing country - Argentina is seeking domestic uranium supply to fuel its expanding nuclear generating capacity and recently signed cooperation agreements with China and the United Arab Emirates. When Argentina's third reactor comes onstream this year, 9% of the country's electricity will be derived from nuclear - and a fourth reactor is out for tender. (Source: WNN)
"Firstly, I welcome Calypso shareholders as future shareholders in U3O8 Corp. - a company that has rapidly advanced uranium discoveries through to defined deposits that have positive economics," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "With this transaction, U3O8 solidifies its position as a leading uranium company in Argentina at a time when the country is calling for local uranium resources to fuel its growing nuclear reactor fleet. We also consolidate our strategic land holdings that cover likely extensions of Argentina's two largest known uranium deposits."