(“UrAmerica” or “the Company”)
UrAmerica has entered into a Strategic Alliance to advance Exploration in the Chubut Province, Argentina
UrAmerica is pleased to announce that it has signed a Strategic Alliance Agreement with Cameco Global South America Inc. (“Cameco”) with whom it has completed a non-brokered Private Placement of US$10,000,000, representing 19.9% of the equity in the Company.
- Cameco has purchased 11,954,579 ordinary shares of the Company (US$ 0.8365 per share), giving them certain rights.
- This investment, among other rights, gives Cameco the exclusive right to acquire 70% of each deposit discovered by UrAmerica, within all of the mining rights currently controlled by the Company in the San Jorge Basin, Chubut Province, Argentina. UrAmerica shall hold the remaining 30% of such deposits.
- When a deposit is defined and if Cameco exercises its right, the mining properties hosting such deposit will be transferred to a newly formed Joint Venture Company in exchange for a payment, per pound of U3O8, identified as a mineral resource or mineral reserve, to the Company, based on the variable spot price, as mutually agreed by the parties. Cameco or its affiliate would then become the operator. A second payment from Cameco to the Company would follow for all additional pounds of U3O8 identified in said deposit, based on the variable spot price, upon achieving positive feasibility, which must be carried out according to certain milestones.
- Pursuant to the Strategic Alliance, a Joint Technical Committee (“JTC”), comprised of two members from Cameco and two members from UrAmerica, has been created to manage and approve the use of proceeds from Cameco’s equity investment in UrAmerica for the exploration programs. The JTC has already approved an initial 12 month Drilling Program of 30,000 meters, focused on 7 drill targets, surrounding and close to the National Commission of Atomic Energy’s (CNEA) Cerro Solo Deposit.
Omar Adra, Founder, CEO and CFO of UrAmerica Ltd., said:
“Cameco is one of the world’s leading uranium producers. Its strong technical expertise makes them the ideal partner for UrAmerica. Through this Strategic Alliance, and on behalf of UrAmerica’s Board of Directors, I feel that we will be able to convert the San Jorge Basin, Chubut Province, Argentina, into a world class uranium district. This partnership will also benefit the Provincial and Local communities, such as Paso De Indios, and is particularly important in view of Argentina`s ambitious nuclear energy program.
On October 25th, 2010, President Cristina Fernandez de Kirchner inaugurated the Pilcaniyeu uranium enrichment plant. In addition, on September 29th of this year, the President inaugurated the country’s 3rd nuclear reactor, Atucha II. Also, the President of National Commission of Atomic Energy (CNEA), Norma Boero, has announced its intention to start the production of its Cerro Solo Deposit in the near future. Nestor Kirchner and Cristina Kirchner’s administrations have always shown a strong commitment to the revival and development of Argentina’s national nuclear sector.
We consider this investment as evidence of Cameco’s confidence in our potential as a company, in our people and our exploration assets. As an Argentine and having founded and leading the Company from Argentina, I am proud to announce this investment and commitment for the benefit of my country and both companies.”
For further information contact UrAmerica Limited at:
Tel: (54) 11 4804 2115