U3O8 Corp. Reports Progress On Capital Restructuring / Director Warrant Exercise

U3O8 Corp. Reports Progress on Capital Restructuring / Director Warrant Exercise

09:00 EDT Wednesday, June 07, 2017 

TORONTO, June 7, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB:  UWEFF) ("U3O8 Corp." or the "Company") is pleased to announce that, as part of the capital restructuring spearheaded by the proposed share consolidation to be voted upon at the Annual and Special Meeting to be held on June 22, 2017, it has reached agreement with a shareholder to reprice and accelerate an aggregate total of 19.3 million previously issued common share purchase warrants (the "Warrants').  In addition, Dr. Keith Barron, founder and director of U3O8 Corp., has offered to exercise out-of-the-money warrants as a means of providing the Company with working capital that is not dilutive to U3O8 Corp. shareholders.

Dr. Keith Barron commented: "As one of its largest shareholders, I am committed to the success of U3O8 Corp.  Having spent a considerable amount of time in the field studying the Company's Laguna Salada and Berlin deposits, I am convinced of their low production cost potential.  Consequently, I am positioning myself for the inevitable rebound in uranium sector and for accelerating growth in the battery commodities market."  

Warrant Repricing and Acceleration

The warrants upon which agreement has been reached are tabulated below, each having been linked to a private placement: 

None of the repriced and accelerated Warrants are held by insiders of the Company. 

The Toronto Stock Exchange (the "TSX") has provided conditional approval for the Company to amend the exercise price of the Warrants to $0.07 per share for a two week period that ends at midnight on June 22, 2017, the day of the Company's Annual and Special Meeting. Any of the Warrants that are not exercised by that deadline will expire. The effective date of the amendment will be on or after June 21, 2017.

Director Exercising Out-of-the-Money Warrants

Dr. Keith Barron has offered to exercise approximately 2.85 million warrants that are priced at $0.035, which will provide the Company with approximately $100,000 in working capital. 

The amended Warrants, plus those to be exercised by Dr. Barron, represent approximately 18% of the Company's warrants. 

Forward-Looking Statements

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