Uranium Participation Corporation
TSX : U

Uranium Participation Corporation

June 21, 2005 13:07 ET

Uranium Participation Corporation Reports Net Asset Value at May 31, 2005

TORONTO, ONTARIO--(CCNMatthews - June 21, 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 Corp.") (TSX:U) closed its initial public offering ("IPO") and became listed on the Toronto Stock Exchange on May 10, 2005. Total proceeds raised through the IPO, including the exercise of an over allotment option which was closed on May 19, 2005, was CND$100,000,000. After paying costs of the issue, net proceeds raised were CND$94,200,000.

Uranium Corp. has entered into various agreements to purchase 2,150,000 pounds of U3O8 at an average purchase price of US$28.13 per pound totaling US$60,480,000. In addition, commission of 1.5% is payable to the Manager, Denison Mines Inc., on these purchases. As at May 31, 2005, 200,000 pounds have been delivered and are included in the investment portfolio. The remaining purchases will be delivered at various times through to September 30, 2005.

The spot price for uranium at May 31, 2005, as quoted by Ux Consulting Company, LLC, was US$29.00 and based on this price and the U3O8 delivered to date, the Company's net asset value as of May 31, 2005 is CDN $4.84 per share.

About Uranium Participation Corporation

Uranium Participation Corporation is an investment holding company created to invest substantially all of its assets in uranium oxide in concentrates (U(3)O(8)), with the primary investment objective of achieving appreciation in the value of its U(3)O(8) holdings.

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