U3O8 Corp.

TSX : UWE
OTCQX : UWEFF


U3O8 Corp.

January 11, 2013 16:14 ET

U3O8 Corp. Completes $3.16 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR U.S. NEWSWIRES

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 completed the final tranche of its previously announced non-brokered private placement for gross proceeds of $2,315,500 through the issuance of 10,525,000 units ("Units") at $0.22 per Unit (the "Offering"). Together with the first tranche which closed on December 28, 2012, the Offering raised total proceeds of $3,161,694 through the issuance of 14,371,337 Units.

Each Unit consisted of one common share of U3O8 Corp. ("Share") and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one Share at $0.30 per Share for a period of 24 months.

All securities issued under the Offering are subject to a statutory 4-month hold period expiring on April 29, 2013 for the first tranche and on May 12, 2013 for the final tranche. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

The net proceeds will be used to fund ongoing work building on the positive Preliminary Economic Assessment ("PEA") recently announced on U3O8 Corp's initial deposit in Colombia, for its exploration projects in Argentina and Guyana, and also for general corporate purposes. Insiders of U3O8 Corp. purchased, directly or indirectly, approximately $2.5 million of the Offering. Of this total, $2.2 million was satisfied by the issuance to U3O8 Corp. of common shares in Pinetree Capital Ltd. (TSX:PNP), which are subject to a statutory hold period expiring on May 12, 2013.

About U3O8 Corp.

U3O8 Corp. is an advanced exploration company focused on exploration and resource expansion of uranium and associated commodities in South America - a promising new frontier for uranium exploration and development. In just one year, U3O8 Corp's uranium resources have grown 7-fold with deposits now in Colombia, Argentina and Guyana comprising of:

  • Berlin Project, Colombia - its flagship property contains a uranium deposit supported by a high-value suite of by-products including phosphate, vanadium, rare earths (yttrium and neodymium) and other metals, which a PEA shows Berlin could be a zero cash cost uranium producer;

  • Laguna Salada Project, Argentina - a near surface, free-digging uranium, vanadium deposit that is potentially amenable to low-cost mining and processing methods; and

  • Kurupung Project, Guyana - an initial uranium deposit in a large emerging uranium district.

Additional information on U3O8 Corp. and its mineral resources are available at www.u3o8corp.com. Follow U3O8 Corp. on:

Facebook: www.facebook.com/u3o8corp

Twitter: www.twitter.com/u3o8corp

Youtube: www.youtube.com/u3o8corp

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the future results of metallurgical test work, whether results of metallurgical test work on a smaller scale to date can be duplicated on a larger scale, the impact of general economic conditions, industry conditions, the timing of lab results and preparation of technical reports and economic studies, the actual results and realization of independent preliminary economic assessments and subsequent metallurgical testing, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on the exploration projects, currency fluctuations, legislative change, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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