Uranium One to buy Energy Metals

04 June 2007

Canada's sxr Uranium One Inc has continued its acquisition spree by agreeing to acquire Energy Metals Corp (EMC) of the USA for some C$1.6 billion ($1.5 billion).


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 ($19.97) per share based upon the closing price of Uranium One on the Toronto stock exchange on 1 June. The deal includes a C$55 million ($52 million) break-fee that would be paid to Uranium One if EMC were to accept another bid. In addition, Uranium One has the right to match competing bids.


Energy Metals has extensive advanced property holdings in Wyoming, Texas and New Mexico that are amenable to in-situ leach (ISL) mining methods. The company is currently development drilling the La Palangana uranium deposit and upgrading the Hobson Uranium Processing Plant in Texas for an anticipated 2008 production date. Energy Metals is also actively advancing other significant uranium properties in the Colorado, Utah, Nevada, Oregon and Arizona. Uranium One has projected annual production from EMC's asset base in the USA of 3630 to 4540 tonnes U3O8 (3080 to 3845 tU) by 2013 from six production centres.


Neal Froneman, president and CEO of Uranium One, said, "With our solid position in Kazakhstan and South Africa, the acquisition of EMC fits in perfectly with our stated strategy of value-accretive external growth and our focus on growth in the United States. The combination of Uranium One and EMC will create a powerhouse in the United States uranium sector with the potential to become the domestic supplier of choice for US utilities."


Energy Metals announced on 18 May that it had entered into talks with respect to a potential sale of the company.


Uranium One owns the Dominion uranium operation in South Africa, as well as the Honeymoon project in Australia. The company recently completed its purchase of UrAsia Energy, which has uranium production assets in Kazakhstan. It has also just acquired the Shootaring Canyon uranium mill in Utah, as well as several uranium exploration properties in four neighbouring states, from US Energy.


Further information


Energy Metals
sxr Uranium One

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