Uranium Energy Corp Provides Project and Corporate Update
Uranium Energy Corp (NYSE-AMEX: UEC, the "Company") is pleased to provide a near-term production update on each of its Palangana and Goliad in-situ recovery (ISR) uranium projects and an update on its current and anticipated balance sheet and capital structure.
Palangana ISR Project
The Company's technical team, including recent hires from Uranium One, is at present on the ground at the 100%-controlled Palangana project in South Texas. The road and drill pads for the disposal well are being built at the project site. Drilling equipment is slated to arrive at Palangana on June 7, 2010. The Company estimates 45-60 days to drill and complete the disposal well. Simultaneous with the drilling of the disposal well, the Company anticipates drilling the first wellfield for Palangana and installing the satellite operation. The Company is pleased to report that all facets of the Palangana project are on time and on budget to date. Notably, all necessary funds and production permits are firmly in hand.
Goliad ISR Project
Yesterday, as scheduled months ago and as reported by the Company in a news release dated January 11, 2010, a remaining hearing commenced in Austin with an Administrative Court pertaining to the Company's Goliad project. In June 2009, the Texas Commission on Environmental Quality ("TCEQ") approved draft permits that would fully authorize the Company to install the initial wellfield and commence production at Goliad. The hearing addresses questions and comments from the public regarding the Company's mine permits at Goliad. The state examiner will provide recommendations to the TCEQ Commissioners who will make the final ruling later this year. It should be noted that the TCEQ Commissioners have the authority and latitude to agree or disagree with the state examiner's recommendations and the TCEQ approved a draft Mine Permit and a draft Production Area Authorization for the Goliad project last year.
No Shelf Registration Statement in Effect or Filed
The Company has recently received inquiries as to whether it has filed a shelf registration statement. To clarify, the Company has no shelf registration statement in effect, nor has the Company filed a shelf registration statement. The Company recently filed two S-3/A registration statements pertaining to previously issued shares and warrants that are accounted for in the current share capital as indicated below.
Current Capital Structure
As reported on April 13, 2010, the Company has recently received a cash payment of US$11,000,000 as complete consideration for the sale of its prior 49%-interest in Cibola Resources LLC to Neutron Energy, Inc. This sale further improved the Company's balance sheet, which has no debt and approximately $26 million cash in the treasury. The continued preservation of the Company's conservative capital structure will remain in place as production commences at Palangana as anticipated later this year.
The Company's current issued and outstanding and fully diluted share capital remains at approximately 60.0 million and 76.0 million common shares, respectively. Cash potential from the full exercise of all outstanding options and warrants will be approximately $34.0 million.
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