A total of 2,336,260 shares of UEC’s common stock will be issued to former CUE stockholders to acquire CUE and its wholly-owned subsidiary holding an undivided 100% legal and beneficial interest in and to certain concession contracts, once the terms of the agreement are complete.
The contracts cover a 230,650-hectare uranium Yuty Project located in southeastern Paraguay.
UEC president and CEO Amir Adnani said that the CUE’s projects and resources will be synergistic with its current operations, and development strategy.
"With share dilution at a low 3.1% for this acquisition, UEC continues to expand and diversify its project portfolio at attractive costs with projects that have been the subject of significant exploration and development," said Adnani.
CUE president and CEO Robert Tyson said that funding uranium projects has been a challenging task since the Fukushima disaster.
"Consummation of this relationship with UEC allows for our project to advance," said Tyson.
"UEC is a recognized ISR uranium producer with a technical team that has an established record of developing and producing sandstone-hosted uranium deposits".
