Uranium Participation Corporation

Uranium Participation Corporation

May 04, 2017 17:30 ET

Uranium Participation Corporation Reports Net Asset Value at April 30, 2017 and Provide Update on Relocation Agreement

TORONTO, ONTARIO--(Marketwired - May 4, 2017) - Uranium Participation Corporation ("UPC") (TSX:U) reports its estimated net asset value at April 30, 2017 was CAD$482.8 million or CAD$4.00 per share. As at April 30, 2017, UPC's investment portfolio consisted of the following:

(in thousands of Canadian dollars, except quantity amounts) Quantity Fair Value
Investments in Uranium:
Uranium oxide in concentrates ("U3O8") 10,080,024 lbs $ 313,298
Uranium hexafluoride ("UF6") 1,903,471 KgU $ 166,433
$ 479,731
U3O8 fair value per pound:
- In Canadian dollars 1 $ 31.08
- In United States dollars $ 22.75
UF6 fair value per KgU:
- In Canadian dollars 1 $ 87.44
- In United States dollars $ 64.00
1 Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada's month-end daily exchange rate of $1.3662.

On April 30, 2017, the common shares of UPC closed on the TSX at a value of CAD$3.92, which represents a 2.0% discount to the net asset value per share of CAD$4.00.

Update on agreement with counterparty to a relocation agreement

On March 29, 2017, the counterparty to a uranium relocation agreement filed for Chapter 11 bankruptcy protection in the United States (see note 6 of the Company's audited annual consolidated financial statements for the year ended February 28, 2017). Pursuant to this uranium relocation agreement, 300,000 KgU as UF6, which is contained in enriched uranium product ("EUP"), owned by UPC, was being held at this organization's storage facility. Subsequent to the announcement, UPC entered into an agreement with the counterparty for the return of 100,000 KgU (of the 300,000 KgU as UF6 previously relocated under the agreement), and to defer the timing of the second and third relocation tranches under the agreement. On April 28, 2017, the return of the 100,000 KgU as UF6 was completed. The Corporation continues to hold title to the UF6 that is stored at this facility and pursuant to the terms of the relocation agreement, the counterparty is not permitted to transfer, sell, or assign the EUP containing the Corporation's UF6 to any person.

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. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. 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.

Caution Regarding Forward-Looking Information

This press release contains certain forward-looking statements and forward-looking information that are based on the Company'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 use of proceeds for the Offering and the anticipated completion of uranium purchases.

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 the Company, 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 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 the Company, see "Risk Factors" in the Company's Annual Information Form dated May 11, 2016, 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, the Company does not undertake to update any forward-looking information statement.

Contact Information

  • David Cates
    President & Chief Executive Officer
    (416) 979-1991 Ext. 362

    Mac McDonald
    Chief Financial Officer
    (416) 979-1991 Ext. 242