Ur-Energy
Announces CDN$5,000,000 Private Placement
Denver, Colorado (Marketwire –
June 1, 2010) Ur-Energy Inc.
(TSX:URE, NYSE Amex:URG) (“Ur-Energy” or the “Company”)
announced that it has closed a brokered private placement financing (the
“Offering”). Under the Offering, the Company issued 5,000,000 common
shares at a price of CDN$1.00 per share for gross proceeds of
CDN$5,000,000. Blackrock, Inc. (“Blackrock”), an insider of the
Company, through one of its investment advisory subsidiaries, subscribed for all
of the 5,000,000 common shares issued under the Offering.
Jeffrey
Klenda, Chairman, stated, “Blackrock has been our largest shareholder since
2005, prior to our IPO, and has been a solid supporter of the Company since that
time. We are extremely pleased with Blackrock’s desire to increase
its holdings to this extent. It clearly demonstrates their ongoing
commitment to Ur-Energy’s success.”
The
proceeds from the Offering are expected to be used by the Company to finance
drilling, mine development on its properties, and for general working capital
and corporate purposes.
Bill
Boberg, President and CEO, stated further, “We continue to be well funded with
CDN$38.5 million as current cash resources as of March 31, 2010. We believe this
is sufficient cash to get our Lost Creek Project into production after receiving
the final necessary licenses in upcoming months. While our current
guidance for receipt of all final permits and licenses continues to be this
summer, various regulatory delays over the past couple of years created a
funding gap before first cash flow. Blackrock’s continuing support of
Ur-Energy is most appreciated.”
Rodman &
Renshaw, LLC, a wholly-owned subsidiary of Rodman & Renshaw Capital Group,
Inc. (NASDAQ: RODM), acted as agent for the Offering.
Following
the Offering, Blackrock is expected to hold approximately 15.34% of the issued
and outstanding shares of the Company. The participation of Blackrock
in the Offering constitutes a Related Party Transaction within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101”). The board of
directors of the Company determined that the transaction is exempt from the
formal valuation and minority shareholder approval requirements of MI 61-101 and
unanimously approved the Offering. The material change report in
respect of the transaction was not filed 21 days in advance of the closing of
the Offering. The shorter period was necessary in order to permit the
Corporation to close the Offering in a timeframe consistent with usual market
practice for transactions of this nature and to respond to the uncertainty in
the equity capital markets given the current global economic
conditions.
About
Ur-Energy
Ur-Energy
is a uranium exploration and development company currently completing mine
planning and permitting activities to bring its Lost Creek Wyoming uranium
deposit into production while also planning and permitting a
two-million-pounds-per-year in situ uranium processing facility. Ur-Energy
engages in the identification, acquisition and exploration of uranium properties
in both Canada and the United States. Shares of Ur-Energy trade on the Toronto
Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol
“URG”. Ur-Energy’s corporate office is located in Littleton, Colorado and its
registered office is in Ottawa, Ontario. Ur-Energy’s website is
www.ur-energy.com.
FOR
FURTHER INFORMATION, PLEASE CONTACT:
|
Rich
Boberg, Director PR/HR
720-981-4588,
ext. 238
866-981-4588,
ext. 238
rich.boberg@ur-energyusa.com
|
Bill
Boberg, President and CEO
720-981-4588, ext. 223
866-981-4588, ext. 223
bill.boberg@ur-energyusa.com
|
This release may contain
“forward-looking statements” within the meaning of applicable
securities laws
regarding events or conditions that may occur in the future (e.g., timetables at Lost Creek;
sufficiency of cash to fund capital requirements; receipt of (and related timing
of) an NRC Source Material License and WDEQ Permit to Mine and all other
necessary permits and regulatory authority related to Lost Creek) and are based
on current expectationsthat, while considered reasonable by
management at this time, inherently involve a number of significant business,
economic and competitive risks, uncertainties and contingencies.Factors that could cause actual
results to differ materially from any forward-looking statements include, but
are not limited to, capital and other costs varying significantly from
estimates; financing conditions and related use of proceeds, failure to
establish estimated resources and reserves; the grade and recovery of ore which
is mined varying from estimates; capital and other costs varying significantly
from estimates; production rates, methods and amounts varying from estimates;
delays in obtaining or failures to obtain required governmental, environmental
or other project approvals; inflation; changes in exchange rates; fluctuations
in commodity prices; delays in development and other factors. Readers should not place undue
reliance on forward-looking statements. The forward-looking statements contained
herein are based on the beliefs, expectations and opinions of management as of
the date hereof and Ur-Energy disclaims any intent or obligation to update them
or revise them to reflect any change in circumstances or in management’s
beliefs, expectations or opinions that occur in the
future.