Cameco bucks up to maintain UEX interest

Vancouver – A $5 million private placement financing for Saskatchewan uranium explorer UEX Corporation (UEX-T) has been increased to $7 million following Cameco’s (CCO-T) decision to maintain its pro-rata interest.

The previously arranged private placement financing of 5 million shares at $1 per share through Sprott Asset Management and the Resolute Growth Fund was increased to 7 million shares at the same price, following Cameco’s decision to exercise its right to maintain its 26% interest in the uranium explorer.

Closure of the financing will see UEX cashed up to over $17.5 million, allocated primarily for exploration of its portfolio of Athabasca Basin uranium projects in northern Saskatchewan.

Surging electricity demands worldwide have pushed up demand for uranium, U3O8, used in nuclear reactors. The price has recently risen to the US$19.25 per pound level.

UEX was formed by Pioneer Metals (PSM-T) and Cameco, in 2002, to explore uranium deposits in the Athabasca Basin. Pioneer transferred its uranium projects to UEX for 46.5 million shares, which were subsequently redistributed to shareholders. Cameco transferred its advanced-stage Hidden Bay project in exchange for 31 million shares, making it the largest stakeholder in the company.

Investors have rallied behind the company, recently pushing the issue up to the $1.50 per share level on strong volumes. As of the latest figures, UEX reports 133.7 million shares outstanding.