Uranium Participation Corporation
TSX : U

Uranium Participation Corporation

November 16, 2005 15:15 ET

Uranium Participation Corporation Files Preliminary Prospectus

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2005) -

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 ("Uranium Participation Corp.")(TSX:U) announced today that it has filed a preliminary prospectus to issue common shares. Uranium Participation Corp. has retained Sprott Securities Inc. as lead underwriter of the offering. The net proceeds of the offering will be used to purchase uranium oxide in concentrates ("U3O8"). An underwriting agreement has not yet been entered into. The terms of the offering (including the number of shares, price and gross proceeds) are expected to be determined at a later date.

Uranium Participation Corp. was created to invest in, hold and may subsequently sell U3O8. Uranium Participation Corp. and Denison Mines Inc. (the "Manager") have entered into a management services agreement pursuant to which the Manager has agreed to manage Uranium Participation Corp.'s activities, including arranging and completing for and on behalf of Uranium Participation Corp., any purchase and sale of U3O8. Uranium Participation Corp. will invest at least 85% of the gross proceeds of the offering in U3O8.

The objective of Uranium Participation Corp. is to provide an investment alternative for investors interested in holding U3O8, which will be physically stored in duly licenced facilities located in Canada, France, the United Kingdom and/or the United States. The strategy of Uranium Participation Corp. is to invest primarily in long-term holdings of U3O8 and not to actively speculate with regard to short-term changes in uranium prices.

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.

About Uranium Participation Corporation

Uranium Participation Corporation is an investment holding company created to invest at least 85% of its assets in uranium oxide in concentrates (U3O8), with the primary investment objective of achieving appreciation in the value of its U3O8 holdings. 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