Ur-Energy Updates on Pathfinder Mines Acquisition

LITTLETON, Colo., Dec. 16, 2013 /CNW/ - Ur-Energy Inc. (TSX: URE, NYSE MKT: 
URG) ("Ur?Energy" or the "Company") is providing an update on the progress to 
closing the previously announced agreement to acquire Pathfinder Mines 
Corporation ("Pathfinder").  Significantly, in recognition of current market 
conditions, Ur-Energy has reached an agreement with the seller to revise the 
terms of the transaction.  The parties are working to satisfy the remaining 
closing conditions to progress to a closing. 
(Logo: http://photos.prnewswire.com/prnh/20110913/LA67628LOGO) 
On July 24, 2012 the Company announced the execution of a Share Purchase 
Agreement ("SPA") to acquire Pathfinder (see Company news release "Ur-Energy 
Enters into Definitive Agreement to Acquire Pathfinder Mines Corporation").  
The transaction called for the purchase of all issued and outstanding shares 
of Pathfinder from its sole shareholder, COGEMA Resources, Inc., an AREVA 
affiliate ("COGEMA"), for US$13,250,000.  An initial escrow payment of 
US$1,325,000 was made upon execution of the SPA and is being held by COGEMA.  
The Company also agreed to assume certain existing reclamation obligations at 
the Pathfinder licensed projects. 
Under the revised terms, the cash purchase price is reduced by 50% in exchange 
for a conditional 5% gross royalty on production from Pathfinder's Shirley 
Basin property.  Payment of the royalty is conditional on the future spot 
market price for U(3)O(8) achieving certain levels, and is subject to an 
adjustable cap. 
The revised terms of the transaction are as follows: 
1. A cash payment of approximately US$6,625,000, including: 

       1. the US$1,325,000 escrow payment, currently held by COGEMA;
       2. an additional US$5,300,000 cash payment at closing; subject
       3. certain other adjustments per the original agreement's terms
          (e.g., sharing of operating expenses and revenues since

      execution of the SPA).
  2. A 5% gross royalty on Pathfinder's Shirley Basin property, upon 

     the following conditions:
       1. if the reported spot price exceeds $55 prior to June 30, 2016
          the royalty is capped at US$6,625,000;
       2. if the reported spot price exceeds $45, but does not exceed
          $55 prior to June 30, 2016 the royalty cap is reduced to
       3. if the reported spot price does not exceed $45 prior to June
          30, 2016 the royalty is terminated; and
       4. at the Company's option, the royalty can be terminated at any

      time by paying the balance owed in cash.
  3. Certain of the parties' indemnification obligations are reduced to 
 match the revised cash terms of the transaction. 
Wayne W. Heili, President and CEO of Ur-Energy commented, "I greatly 
appreciate the thoughtful cooperation of AREVA in arriving at the revised 
agreement terms.  Much time has passed since we first agreed to complete this 
transaction, and many circumstances have changed, but the respectful 
relationship between AREVA and Ur-Energy has never been in question.  I am 
pleased to be at the stage of finalizing the closing arrangements at this 
time.  Adding the Shirley Basin and Lucky Mc properties to our flagship Lost 
Creek Property and other exploration projects provides Ur-Energy excellent 
prospects for the expansion of our operations over coming years.  This 
transaction brings a highly accretive set of assets and historic mineral 
About Pathfinder Mines Corporation Pathfinder owns the Shirley Basin and Lucky 
Mc (pronounced "Lucky Mac") mine sites in the Shirley Basin and Gas Hills 
mining districts of Wyoming, respectively, from which it historically produced 
more than seventy-one million pounds of uranium, primarily from the 1960s 
through the 1990s.  Internal historic reports prepared by Pathfinder estimate 
the presence of remaining resources at the two projects totalling 
approximately 15 million pounds U(3)O(8).  These historic reports estimate 
that the Shirley Basin project holds over 10 million pounds U(3)O(8) at a GT 
(grade-thickness) cut off of 0.25 ft%.  The average grade reported for the 
property is 0.21% U(3)O(8.)  Lucky Mc holds an additional 4.7 million pounds 
U(3)O(8) at similar grade.  These historic resource calculations were reviewed 
by Ur-Energy during a due diligence investigation but a qualified person has 
not done sufficient work to classify the historical estimates as current 
mineral resources or mineral reserves under  National Instrument 43-101 and 
Ur-Energy is not treating the historic estimate as current mineral resources 
or mineral reserves.  The tailings facility at the Shirley Basin site is one 
of the few remaining facilities in the U.S. that is licensed by the United 
States Nuclear Regulatory Commission ("NRC") to receive and dispose of 
byproduct waste material from other in-situ uranium mines. 
About Ur-Energy Ur-Energy is a junior uranium mining company operating the 
Lost Creek in-situ recovery uranium facility in south-central Wyoming.  The 
Lost Creek processing facility has a two million pounds per year nameplate 
capacity with a one million pound annual rate planned from the mining areas at 
Lost Creek.  Ur-Energy engages in the identification, acquisition, exploration 
development, and operation of uranium projects in the United States and 
Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the 
symbol "URE" and on the NYSE MKT under the symbol "URG". Ur-Energy's corporate 
office is located in Littleton, Colorado; its registered office is in Ottawa, 
Ontario.  Ur-Energy's website is www.ur-energy.com. 
Rich Boberg, Director IR/PR                                                                                             
  Wayne Heili, President and CEO 
rich.boberg@ur-energy.com  wayne.heili@ur-energy.com 
Cautionary Note Regarding Forward-Looking Information This release may contain 
"forward-looking statements" within the meaning of applicable securities laws 
regarding events or conditions that may occur in the future (e.g., ability and 
timing to complete all conditions to closing; anticipated expansion of 
resources and operations as a result of the assets acquired; the accretive 
value of the acquisition) and are based on current expectations that, while 
considered reasonable by management at this time, inherently involve a number 
of significant business, economic and competitive risks, uncertainties and 
contingencies. Factors that could cause actual results to differ materially 
from any forward-looking statements include, but are not limited to, capital 
and other costs varying significantly from estimates; failure to establish 
estimated resources and reserves; the grade and recovery of ore which is mined 
varying from estimates; production rates, methods and amounts varying from 
estimates; delays in obtaining or failures to obtain required governmental, 
environmental or other project approvals; inflation; changes in exchange 
rates; fluctuations in commodity prices; delays in development and other 
factors. Readers should not place undue reliance on forward-looking 
statements. The forward-looking statements contained herein are based on the 
beliefs, expectations and opinions of management as of the date hereof and 
Ur-Energy disclaims any intent or obligation to update them or revise them to 
reflect any change in circumstances or in management's beliefs, expectations 
or opinions that occur in the future.

SOURCE  Ur-Energy Inc. 
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