Uranium Participation Corporation
TSX : U

Uranium Participation Corporation

January 16, 2014 08:12 ET

Uranium Participation Corporation Announces $50 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwired - Jan. 16, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Uranium Participation Corporation (TSX:U) (the "Company" or "Uranium Participation Corp.") has today entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc., and including Raymond James Ltd., Cantor Fitzgerald Canada Corporation, RBC Capital Markets and Scotia Capital Inc. (collectively the "Underwriters") pursuant to which the Underwriters have agreed to purchase on a bought deal basis 9,150,000 common shares of the Company at a price of $5.47 per common share, representing total gross proceeds of approximately $50 million (the "Offering"). Closing is expected on or about February 6, 2014 and is subject to regulatory approval including that of the Toronto Stock Exchange.

The Underwriters also have an option to purchase up to an additional 15% of the Offering at the issue price to cover over-allotments for a period of 30 days after the date of Closing.

The net proceeds of the Offering will be used to fund future purchases of U3O8 and/or UF6 and for general corporate purposes.

The Common Shares to be issued under this offering will be offered by way of a short form prospectus in all provinces in Canada except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the Company and the underwriting syndicate.

Caution Regarding Forward-Looking Information

This press release contains certain forward-looking statements and forward-looking information that are based on Uranium Participation Corp.'s current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intent", "estimate", "anticipate", "plan", "should", "believe" or "continue" or the negative thereof or variations thereon or similar terminology and include statements with respect to the proposed closing date and use of proceeds for the Offering.

By their very nature, forward-looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of Uranium Participation Corp., may cause actual results to differ materially from the expectations expressed in the forward-looking statement. These factors include, but are not limited to, changes in commodity prices and foreign exchange as well as the risk that the Offering will not be completed by the expected closing date, the risk that regulatory approvals will not be obtained and the risk that the Company will not be successful in completing the purchase of additional U3O8 and/or UF6 on terms satisfactory to the Company. For a description of the principal risks of Uranium Participation Corp., see "Risk Factors" in Uranium Participation Corp.'s Annual Information Form dated May 2, 2013, a copy of which is available at www.sedar.com.

These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward-looking statements. Except where required under applicable securities legislation, Uranium Participation Corp. does not undertake to update any forward-looking information statement.

About Uranium Participation Corporation

Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates ("U3O8") and uranium hexafluoride ("UF6") (collectively "uranium"), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on Uranium Participation Corporation's website at www.uraniumparticipation.com.

Contact Information

  • Uranium Participation Corporation
    Ron Hochstein
    President and Chief Executive Officer
    (416) 979-1991 Ext. 232

    Uranium Participation Corporation
    James Anderson
    Chief Financial Officer
    (416) 979-1991 Ext. 372
    www.uraniumparticipation.com