Uranium Energy Corp Acquires Major South Texas Uranium Exploration Database
CORPUS CHRISTI, TX, Aug. 31, 2011 /PRNewswire/ – Uranium Energy Corp (NYSE-AMEX: UEC, “UEC” or the “Company”) is pleased to announce that it has entered into a definitive purchase and sale agreement with Uranium One Inc. which provides for the acquisition by the Company of a South Texasuranium database package (the “Database”) from Uranium One.
This strategic Database is to be acquired for a value of $900,000, comprised of $400,000 in cash and 159,236 common shares of the Company at a price of $3.14, and will significantly advance the Company’s ongoing exploration efforts in South Texas. The Database contains over 40 uranium targets that the Company plans to evaluate.
The Database is an evaluation of the uranium potential within the Goliad Formation located along the South Texas Uranium Belt, an area extending from south of Houston to the Mexican border. The Company’s Palangana, Goliad, Salvo and Nichols projects are all within the Goliad Formation. The study encompasses an area approximately the size of Pennsylvania.
Amir Adnani, President and CEO, stated, “UEC’s Hobson processing plant forms the basis of our regional production strategy in South Texas and is located in the area of study, making this Database particularly useful for us. UEC is incorporating this Database and the associated acquisition and exploration targets into its ongoing efforts to develop additional uranium sources for processing at the Hobson plant.”
The acquisition of this data fits into Uranium Energy Corp’s strategy of targeting properties for acquisition that have already been the subject of significant exploration and development by senior energy companies in the past.
The Database includes raw and interpreted data compiled and updated by Total Minerals, including logs from Mobil Oil Corporation’s uranium division (Mobil) from the mid-1980’s. Specifically, the Database contains:
- 4,894 South Texas uranium logs – 2.8 million feet of drilling
- 13,882 South Texas oil and gas logs – 41.6 million feet
- Data on +40 uranium targets to be evaluated
- 752 maps and sections across South Texas
- 103 reports and analyses documenting the Study
In 1993, Total Minerals was succeeded in ownership of U.S. uranium properties and facilities, including the Christensen-Irigaray property, by Cogema. Cogema was later superseded by AREVA. Uranium One obtained the Database as part of its recent acquisition of the Christensen-Irigaray ISR projects from AREVA.