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NYSE Amex Equities Exchange Symbol -
UECCORPUS CHRISTI, TX,
March 30, 2012 /PRNewswire/ - Uranium Energy Corp ("UEC" or the "Company") (NYSE-AMEX: UEC) and CUE Resources Ltd. ("CUE") (TSX-V: CUE) are pleased to announce that UEC's acquisition of CUE by way of a plan of arrangement (the "Transaction") has closed, effective at
12:01 am on
March 30, 2012. Following the completion of the Transaction, CUE is now a wholly-owned subsidiary of UEC. In connection with the Transaction, UEC will issue 2,345,926 UEC common shares to former CUE shareholders as well as 171,303 UEC shares to settle certain debts of CUE. CUE, through its wholly-owned subsidiary, held an undivided 100% legal and beneficial interest in and to certain concession contracts covering a 230,650-hectare uranium exploration property located in southeastern
Paraguay known as the Yuty ISR Project. See the Company's news release dated
January 23, 2012 for additional information on the now completed plan of arrangement.
President and CEO
Amir Adnani stated, "Given the proximity of the Yuty project to our Coronel Oviedo property, this transaction enables clear operational synergies and allows us to consider implementing the hub-and-spoke production strategy we have successfully deployed in
South Texas. We believe that
Paraguay is host to a highly prospective, large-scale ISR-amenable uranium district with mineralization that is very similar to that of
South Texas. In addition, consistent with other recent UEC project acquisitions, we have acquired an asset with an extensive defined resource at an attractive price. Given the 11-million pound total resource at Yuty, the Company now has both an exploration and development focus in this business-oriented, stable country. We're excited about the opportunities that lie ahead."
Dundee Securities Ltd. acted as financial advisor to UEC in connection with the Transaction.