UraMin Inc.
AIM : UMN
LSE : UMN

UraMin Inc.

December 18, 2006 09:11 ET

UraMin Inc. Announces Listing on Toronto Stock Exchange

TORONTO, ONTARIO--(CCNMatthews - Dec. 18, 2006) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

UraMin Inc., (AIM:UMN)(LSE:UMN) the emerging uranium producer with three near-term projects in Africa, is pleased to announce that its common shares will be listed and posted for trading on the Toronto Stock Exchange at the opening today, Monday, December 18, 2006. The Company's shares will trade under the symbol "UMN." The Company's shares also trade on the Alternative Investment Market ("AIM") of the London Stock Exchange plc under the same symbol.

Samuel Jonah KBE, Non-Executive Chairman, and Stephen R. Dattels, Executive Deputy Chairman and Founder, head the UraMin Board of Directors. Mr. Dattels said, "With this listing on the Toronto Stock Exchange, a world-leading stock exchange for mineral exploration and mining companies, UraMin positions itself to become an important uranium producer in the near term. The Company has the financial strength to continue to develop its existing projects as well as to assess new projects. Most importantly, we have built a management team which can advance the Company's uranium projects to the bankable feasibility stage and on into commercial production."

John (Ian) Stalker, CEO of UraMin, added, "This is an exciting time for uranium companies. With this secondary listing, we are pleased to introduce our company to the North American equity markets and to the opportunity to enhance our profile throughout the mineral industry globally."

UraMin was established in February 2005 to acquire and develop mineral properties, predominantly uranium, and has raised approximately US$170 million for operations to date. The Company was admitted to the AIM market of the London Stock Exchange in April 2006 with an initial public financing of US$60 million. Immediately prior to the Toronto Stock Exchange listing, the Company raised an additional US$70 million. Today the Company has working capital of approximately US$100 million and a market capitalization of approximately US$420 million on an undiluted basis. Both financings were effected by BMO Capital Markets and Canaccord Adams Limited. The Company's designated market maker in North America is TD Securities Inc.

The Company's Projects

UraMin is focused on advancing its 100%-owned Trekkopje uranium project in Namibia to the completed feasibility study stage. Should such a feasibility study be sufficiently positive, initial mining and processing operations could be in place before the end of 2007. The Company is also drilling and expects to commence feasibility studies at its 90%-owned Bakouma uranium project in the Central African Republic, and advanced exploration activities are underway at its 65%-owned Ryst Kuil uranium project in South Africa.

In summary, Sam Jonah, Chairman of the Company, said, "UraMin is making rapid progress at all three of its lead projects. Our near-term strategy is to complete the feasibility studies on the lead projects, then to finance and develop each of these into operating mines. By 2011 we aim to be a mid-tier uranium mining and exploration company."

Trekkopje, Namibia

The Company's 100%-owned, 129,000-hectare Trekkopje Project is located in west-central Namibia about 65 km northeast of Swakopmund. Based on significant prior drilling, plus the Company's confirmation drilling, SRK Consulting has estimated an NI 43-101-qualified Measured and Indicated Mineral Resource of 18.4 million pounds of U3O8 (61 million tonnes at a grade of 0.014%) and an Inferred Mineral Resource of 139.2 million pounds U3O8 (502 million tonnes at a grade of 0.013%), both calculated using an 80-ppm cut-off grade.

With a feasibility study in progress, which is projected to be completed in the third quarter of 2007, SRK reports the potential for simple and cost-effective open pit mining, with 80% of known mineralization shallower than 15 m, below a nominal, 2 m alluvial surface. After completing Phase I metallurgical testwork, SRK reports good recoveries achieved from both tank leach and heap leach processes, and has also confirmed the recovery of vanadium in the ratio of 1 unit of V2O5 to every 3 units of U3O8.

UraMin plans to develop a 500,000-pound per year trial mining and processing operation starting 2007 and, conditional upon a robust feasibility study result, the Company anticipates being able to commence full-scale production at an anticipated rate of three million pounds per annum by the end of 2008. This staged process is planned to help define full-scale mining and processing performance, productivity parameters and to provide more accurate operating cost estimates. Management estimates the capital cost of the trial operation at approximately US$30 million, and expects it to be fully operational by the end of 2007.

Ryst Kuil, South Africa

At UraMin's Ryst Kuil uranium project in the Karoo region of South Africa, the Company now has eight licenses, in which it owns a 65% interest. A further six licenses are under application. The total historical mineral resource outlined by a prior holder on the licenses for which the company has applied is 64 million pounds of U3O8 (29 million tonnes at a grade of 0.1%), with awarded licenses covering approximately 50% of that surface area.

Exploration is underway with a target to complete an updated NI 43-101-qualified resource and mineral reserve statement in the second quarter, 2007. Drilling is scheduled to commence in January 2007. The Company is now selecting a consultant with a projected completion date for the Definitive Feasibility Study by March 2008. The Company believes that the property is capable of being placed into commercial production by late 2009 at the rate of 2.6 to 3.0 million pounds uranium per year with significant molybdenum by-product.

Bakouma, Central African Republic

UraMin holds a 90% working interest over ten separate areas of uranium mineralization at Bakouma in south-central Central African Republic and has applied for two additional licenses, which, if granted, would extend the project area to 2,900 sq. km.

The Company has already completed 10,000 meters of an initial confirmatory reverse-circulation drilling program of 15,000 meters, with assays pending. Historic resources were reported by the prior property owners of 41 million pounds of U3O8 (7 million tonnes at a grade of 0.27%) which require confirmation drilling in order to make them NI 43-101 compliant. The Company estimates that a NI 43-101-qualified mineral resource statement will be available by the end of February 2007 at Bakouma.

AMC Consultants is performing a scoping study review of mining options at present, and the Company will shortly select a consultant with overall responsibility for a feasibility study, with a targeted completion by early 2008.

Other Properties

UraMin also controls a number of uranium exploration properties in Canada (Athabasca Basin, Northern Quebec) and Africa.

Management

The UraMin Board is headed by Non-Executive Chairman, Samuel Jonah KBE, and Executive Deputy Chairman, Stephen R. Dattels. Mr. Jonah is Non-Executive President of AngloGold Ashanti Limited and Executive Chairman of Equator Exploration Limited, as well as a member of President Thabo Mbeki's Advisory Council of South Africa.

Mr. Dattels is the Founder of UraMin and has been active in its formation, development and financing. He was also a key executive at Barrick Gold Corporation during its formative years and is a financier and founder of a number of mining companies.

John (Ian) Stalker is Chief Executive Officer. He has over thirty years of experience as an international mining executive, having most recently worked for Gold Fields Ltd. as Vice President responsible for the company's main project activities in Europe and Australia. Mr. Stalker has been responsible for placing eight mines into production, including the Siguri, Bibani and Geita mines in Africa.

Mr. G. M. Greenway, Pr.Sci.Nat. (SACNASP), MSAIMM, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in the news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed by Mr. G. M. Greenway. The news release was prepared by management, who take full responsibility for content.

Glossary

Feasibility study

A comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant factors are considered in sufficient detail for it to reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production

Lb Pound

U308 ppm Triuranium octaoxide grades in parts per million generated as a result of the conversion of down hole total gamma radiometric probe data to equivalent uranium oxide using probe calibration on known uranium sources and QA/QC procedures.

"Industry Standard Procedure"

Uranium heavy silvery-white metallic element found in several minerals, notably uraninite and carnotite

1. No more recent estimates or data are available to the issuer.

2. The UraMin Qualified Person ("QP") has not done sufficient work to classify the historical estimates as current Mineral Resources as per the CIM (2005) guidelines and section 2 of the Instrument (NI43-101).

3. The issuer is not treating the historical estimates as current Mineral Resources as defined in sections 1.2 and 1.3 of the Instrument (NI43-101) and as per the CIM (2005) guidelines.

4. As portions of the historical resource estimates occur over farms that are not included in the UraMin options and the information used in the estimation of these historical resource estimates has not been verified by the UraMin QP these estimates should not be relied upon. It must be noted that the proportions of the historical resource estimates on the UraMin properties cannot be delineated using the available information.

5. UraMin considers the historical estimates to be relevant to its proposed exploration programmes. A review of the available documentation suggests that in preparing historical resource estimates Esso and Southern Sphere applied reasonable practices.

Forward-Looking Statements:

This news release contains forward-looking statements, within the meaning of applicable securities laws, relating to UraMin's objectives and strategies to achieve these objectives and similar statements covering anticipated future events, results, circumstances, performance or expectations that are not historical facts. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Words such as "expects", "intends", "plans", "projects", "believes", "estimates", "anticipated", "scheduled", "believes", "targets", "aiming", and similar expressions are used to identify such forward-looking statements. These statements are not guarantees of future performance and are based on the Company's estimates and assumptions that are subject to risks and uncertainties inherent in the business of the Company which could cause the actual results and performance of the Company to differ materially from the forward-looking statements contained in this news release.

Forward-looking statements in this press release are subject to known and unknown risks, uncertainties and other factors that may cause UraMin's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including risks relating to: the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources or reserves; the uncertainty of mineral resource and mineral reserve estimates and the ability to economically exploit mineral resources and mineral reserves; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of the Company to obtain all permits, consents and authorizations required for its operations and activities; competition for the acquisition, exploration and development of mineral interests; and health and safety and environmental risks); uranium and foreign exchange rate fluctuations; the ability of the Company to fund the capital and operating expenses necessary to achieve the business objectives of the Company; uncertainty associated with commercial negotiations and negotiating with foreign governments; international business activities; dependence on key personnel; the ability to access capital markets; labor relations matters; changes in general economic conditions, the financial markets and the demand and market price for uranium. The Company cautions that this list of factors is not exhaustive.

Although the forward-looking statements contained in this news release are based upon what the Company believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company, except as required by applicable law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances. Readers may access complete information on UraMin at the Company's website, www.uramin.com.

THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES. THE MATERIAL SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED, AND SHOULD NOT BE CONSTRUED, AS AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ANY OTHER JURISDICTION. THE SECURITIES OF THE COMPANY DESCRIBED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE APPLICABLE LAWS OF ANY STATE, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE LAWS. THERE IS NO INTENTION TO REGISTER ANY PORTION OF THE OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES.

The TSX has neither approved nor disapproved the contents of this press release.

Contact Information

  • UraMin
    Ian Stalker
    Chief Executive Officer
    +27 0 11 783 5056
    Website: www.uramin.com
    or
    Canaccord Adams
    Tyler Broda/Robin Birchall
    +44 0 20 7050 6770 (or 6500)
    or
    Toronto
    Steve Vaughan
    McMillan Binch Mendelsohn LLP
    (416) 865-7931