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June 4, 2007
Uranium One Announces Definitive Agreement to Acquire Energy Metals Corporation Toronto, Ontario; Vancouver, British Columbia; Johannesburg, South Africa – sxr Uranium One Inc. (“Uranium One”) and Energy Metals Corporation (“EMC”) are pleased to announce that the two companies have signed a definitive agreement whereby Uranium One will acquire all of the shares of EMC. The acquisition will dramatically enhance Uranium One’s asset portfolio in the United States and solidify the new Uranium One’s ability to build a leading U.S. uranium producer. Under the terms of the agreement, EMC shareholders will receive 1.15 common shares of Uranium One for each issued share of EMC, representing a value of C$19.12 per share based upon the closing price of Uranium One on the TSX on June 1, 2007. This represents a 28% premium to the 20 day volume weighted average trading prices of Uranium One’s and EMC’s shares on the TSX for the period ending May 17, 2007, the day before EMC announced that it had entered into exclusive negotiations with respect to a potential sale of the company. The acquisition of EMC is consistent with Uranium One’s value-accretive external growth strategy and will consolidate Uranium One’s position in the United States. On a pro forma basis, Uranium One will have: • a fully diluted market capitalization of US$7.8 billion and improved liquidity • a strong balance sheet with a combined cash balance of US$678 million (includes proceeds from in the money warrants and options) • a balanced and geographically diversified portfolio of reserves and resources • the second largest uranium reserve and resource base in the world in terms of publicly traded, pure play uranium companies • two producing mines and a pipeline of nine projects with the potential to deliver year-on-year growth in production out to 2013 • a low cost production base with 70% of production from in situ recovery (ISR) • a combined uranium sales contract book that is unhedged and provides investors with significant exposure to any further uranium price increases • the most comprehensive ISR and conventional mining team with the capacity to deliver on the combined company’s production growth profile Commenting on the proposed acquisition, Neal Froneman, Uranium One President and CEO said:
CUY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
