NetworkNewsBreaks – Uranium Energy Corp. (NYSE American: UEC) Announces Completion of Uranium Purchases, Additional Funding
Uranium Energy (NYSE American: UEC), a U.S.-based uranium mining and exploration company, has secured 800,000 pounds of additional U.S.-warehoused uranium; the shipment is comprised of a delivery in April consisting of 500,000 pounds and a second delivery scheduled for December consisting of 300,000 pounds; this uranium purchase follows a previously announced acquisition of 400,000 pounds. In total, UEC now has contracts to purchase 1,200,000 pounds of U3O8 at a volume-weighted average price of $28.94 per pound. In addition, the company has entered into definitive agreements with institutional investors to purchase 10,000,000 UEC common shares at $3.05 per share. The registered direct offering, which is planned for completion on or before March 19, 2021, should result in estimated gross proceeds of more than $30 million for the company. UEC is also featured in a recent Cannaccord Genuity report (https://nnw.fm/585Po). In the report, UEC maintained its rating and saw an increased target price of $3.50 per share, up from $2.15. The new report was released following UEC’s second-quarter financial results and its announcement that it intends to purchase physical uranium inventory. The report noted that the rationale for the physical uranium inventory purchase included the company’s intent to take advantage of current low-spot uranium prices, a decision the report called “well timed.” The move also provides UEC with inventory to support future marketing efforts and frees up UEC’s domestic mine production for the U.S. Uranium Reserve and U.S.-specific opportunities. The report also noted UEC’s strengthened balance sheet in its decision to increase the company’s target price. “We are successfully executing and expanding upon our physical uranium strategy,” said Uranium Energy president and CEO Amir Adnani in the press release. “This initiative will support three objectives: 1) strengthens our balance sheet as uranium prices appreciate; 2) provides strategic inventory to support future marketing efforts with utilities that could complement production and accelerate cashflows; and 3) increases the availability of our Texas and Wyoming production capacity to pursue specific opportunities for uranium of U.S. origin, which may command premium pricing due to the scarcity of domestic uranium production. Following the closing of this offering and delivery of contracted drummed uranium, UEC will have approximately $95 million of cash, equity and inventory holdings, including approximately $35 million of U.S. warehoused uranium.”
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Uranium Energy (NYSE American: UEC), a U.S.-based uranium mining and exploration company, has secured 800,000 pounds of additional U.S.-warehoused uranium; the shipment is comprised of a delivery in April consisting of 500,000 pounds and a second delivery scheduled for December consisting of 300,000 pounds; this uranium purchase follows a previously announced acquisition of 400,000 pounds. In total, UEC now has contracts to purchase 1,200,000 pounds of U3O8 at a volume-weighted average price of $28.94 per pound. In addition, the company has entered into definitive agreements with institutional investors to purchase 10,000,000 UEC common shares at $3.05 per share. The registered direct offering, which is planned for completion on or before March 19, 2021, should result in estimated gross proceeds of more than $30 million for the company. UEC is also featured in a recent Cannaccord Genuity report (https://nnw.fm/585Po). In the report, UEC maintained its rating and saw an increased target price of $3.50 per share, up from $2.15. The new report was released following UEC’s second-quarter financial results and its announcement that it intends to purchase physical uranium inventory. The report noted that the rationale for the physical uranium inventory purchase included the company’s intent to take advantage of current low-spot uranium prices, a decision the report called “well timed.” The move also provides UEC with inventory to support future marketing efforts and frees up UEC’s domestic mine production for the U.S. Uranium Reserve and U.S.-specific opportunities. The report also noted UEC’s strengthened balance sheet in its decision to increase the company’s target price. “We are successfully executing and expanding upon our physical uranium strategy,” said Uranium Energy president and CEO Amir Adnani in the press release. “This initiative will support three objectives: 1) strengthens our balance sheet as uranium prices appreciate; 2) provides strategic inventory to support future marketing efforts with utilities that could complement production and accelerate cashflows; and 3) increases the availability of our Texas and Wyoming production capacity to pursue specific opportunities for uranium of U.S. origin, which may command premium pricing due to the scarcity of domestic uranium production. Following the closing of this offering and delivery of contracted drummed uranium, UEC will have approximately $95 million of cash, equity and inventory holdings, including approximately $35 million of U.S. warehoused uranium.”
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
