Uranium Participation Corporation
TSX : U
TSX : U.WT.A

Uranium Participation Corporation

September 14, 2006 09:11 ET

Uranium Participation Corporation-Closes Public Offering

TORONTO, ONTARIO--(CCNMatthews - Sept. 14, 2006) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Uranium Participation Corporation (the "Company")(TSX:U)(TSX:U.WT.A) is pleased to announce the closing of an aggregate offering of 11,363,650 units (the "Units"). Each Unit consists of one common share and one-quarter of a common share warrant of the Company.

The syndicate of underwriters was led by Sprott Securities Inc., Dundee Securities Corporation and CIBC World Markets Inc. as co-managers and included National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation and Raymond James Ltd. (the "Underwriters")

Each whole common share purchase warrant entitles the holder to acquire a common share for $12.00 at any time during the 24 months following the closing. The Units were sold at a price of $8.80 per Unit for aggregate gross proceeds of $100,000,120. The Units sold under the offering included 1,136,378 Units issued as a result of the exercise of the over-allotment option by the Underwriters.

The proceeds of the offering will be used to fund a conditional commitment to acquire 500,000 KgU as uranium hexafluoride (UF6), to fund future purchases of uranium and to fund the ongoing obligations of Uranium Participation Corp. Uranium Participation Corp. will invest at least 85% of the gross proceeds of the offering in uranium, which may include uranium oxide in concentrates ("U3O8") and UF6.

These securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Caution Regarding Forward-Looking Information

This press release contains certain forward-looking statements and forward-looking information that are based on Uranium Participation Corporation'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.

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 Corporation, 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. For a description of the principal risks of Uranium Participation Corporation, see "Risk Factors" in Uranium Participation Corporation's Annual Information Form dated April 19, 2006, 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 Corporation does not undertake to update any forward-looking information statement.

About Uranium Participation Corporation

Uranium Participation Corporation is an investment holding company which invests in U3O8 and UF6 with the primary investment objective of achieving appreciation in the value of its uranium holdings. The uranium holdings are physically stored in duly licenced facilities located in Canada, France and the United States. The strategy of the Company is to invest primarily in long-term holdings of U3O8 and UF6 and not to actively speculate with regard to short-term changes in uranium prices.

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
    E. Peter Farmer
    President
    (416) 979-1991 Ext. 231
    or
    Uranium Participation Corporation
    James Anderson
    Chief Financial Officer
    (416) 979-1991 Ext. 372
    www.uraniumparticipation.com