JOHANNESBURG – SXR URANIUM ONE of Toronto and ENERGY METALS CORP. (EMC) of Vancouver have announced that the two companies have signed a definitive agreement whereby Uranium One will acquire all of the shares of EMC. EMC shareholders will receive 1.15 common shares of Uranium One for each issued share of EMC, representing a value of $19.12/share, or $1.6 billion.
Uranium One is particularly interested in EMCs portfolio of deposits and development projects in the United States. The portfolio includes measured resources of 10.7 million lb U3O8, indicated resources of 49.7 million lb, the Hobson processing facility currently undergoing expansion to 1.0 million lb/year in Texas, and advanced stage projects that will lead to first production at the Hobson facility in 2008. Uranium One is also projecting production from Wyoming where EMC has 10 advanced stage projects in the Great Divide Basin, three in the Powder River Basin and two in Shirley Basin. If all goes as planned, Uranium Ones production will reach 28.0 million lb in 2013.
A combined Uranium One and EMC could bump Saskatoon-based CAMECO out of top spot as the worlds largest uranium producer. Analysts put Camecos expected production at 27.2 million lb by 2011.
Detailed information about Uranium One (both its uranium and gold projects) is available at www.Uranium1.com.