Uranium One Provides Update on Betpak Dala and Kyzylkum Joint Ventures
TORONTO, June 5, 2014 /CNW/ - Uranium One Inc. ("Uranium One" or the
"Company") announced today that the Astana City Court has dismissed the
appeal of the Company's Betpak Dala and Kyzylkum joint ventures against the
March 26, 2014 Kazakh court order invalidating the Akdala, South Inkai and
Kharasan subsoil use contracts.
Uranium One also announced that its parent company, Rosatom, and Kazatomprom,
the Company's Kazakh joint venture partner, have signed an agreement providing
for the issuance of new subsoil use rights on the same terms for the Akdala,
South Inkai and Kharasan uranium fields by October 28, 2014.
Concurrently with the signing of this agreement, Betpak Dala and Kyzylkum
entered into a number of other agreements which provide for the continuation
of normal business operations and which are designed to ensure that the
economic return to the joint ventures from existing operations will not be
affected in the period prior to the issuance of the new subsoil use rights.
Uranium One and Kazatomprom also signed a definitive uranium offtake agreement
ensuring the continuity of deliveries to Uranium One and its customers during
The agreement relating to the issuance of new subsoil use rights was signed by
Sergiy Kirienko, Chief Executive Officer of Rosatom, and Vladimir Shkolnik,
Chairman of Kazatomprom's Management Board, and was among the documents
formally signed in the presence of the Presidents of the Russian Federation
and the Republic of Kazakhstan at a high level Russia/Kazakhstan summit
meeting held in Astana, Kazakhstan on May 29, 2014.
A memorandum of understanding for cooperation in the construction of
Kazakhstan's first nuclear power plant was also signed during the summit,
together with a comprehensive program relating to further cooperation between
the two countries in the peaceful uses of nuclear energy as well as a joint
statement on closer cooperation in alternative energy and rare earth metals
About Uranium One
Uranium One is one of the world's largest uranium producers with a globally
diversified portfolio of assets located in Kazakhstan, the United States,
Australia and Tanzania. ROSATOM State Atomic Energy Corporation, through its
affiliates, owns 100% of the outstanding common shares of Uranium One.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Forward-looking statements and risk factors: This news release contains
certain forward-looking statements. Forward-looking statements include but are
not limited to those with respect to the outcome of further possible appeals
of the court order, the probability of a successful appeal of that order (if
any), the possibility of concluding and the terms of any new subsoil use
contracts which may be entered into with Kazatomprom if the order is not
reversed, the price of uranium, the estimation of mineral resources and
mineral reserves, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits, success of
exploration activities, permitting time lines, currency fluctuations,
requirements for additional capital, government regulation of mining
operations, obtaining of necessary governmental and corporate approvals,
environmental risks, unanticipated reclamation expenses, the timing and
potential effects of proposed transactions, title disputes or claims,
limitations on insurance coverage, and the timing and possible outcome of
pending litigation. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, performance or achievements
of Uranium One to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. Such
risks and uncertainties include, among others, the reversal of the court order
on appeal, the obtaining of new subsoil use rights if the order is not
reversed, as well as those factors referred to in the section entitled "Risk
Factors" in Uranium One's Annual Information Form for the year ended December
31, 2013, which is available under Uranium One's profile on SEDAR at
www.sedar.com, and which should be reviewed in conjunction with this document.
There can be no assurance as to whether or on what terms new subsoil use
rights might be obtained, or as to whether all required regulatory, corporate
and other approvals will be obtained or as to the ultimate outcome of the
current legal proceedings. If the order is not reversed in full or new
subsoil use rights are not granted or alternative arrangements implemented (or
are granted or implemented on less favourable terms), the effect on Uranium
One may be material. Although Uranium One has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Uranium One expressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except in accordance with applicable
For further information about Uranium One, please visit www.uranium1.com.
SOURCE Uranium One Inc.
Chris Sattler, Chief Executive Officer, Tel: +1 647 788 8500; Anton Jivov,
Vice President, Corporate Affairs, Tel: +1 647 788 8461
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CO: Uranium One Inc.
NI: MNG ORDER VNT
-0- Jun/05/2014 13:03 GMT
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