U3O8 moves to TSX-V, hires Momentum for IR services
2022-08-05 10:52 ET - News Release
Mr. Richard Spencer reports
U3O8 CORP COMMENCES TRADING ON THE TSXV AND ANNOUNCES CORPORATE UPDATE
The TSX Venture Exchange has approved the uplisting of U3O8 Corp.'s common shares from the NEX trading platform. Trading of the common shares on the TSX-V will commence at the open of trading today under the symbol UWE.
Richard Spencer, U3O8's president and chief executive officer, commented: "The graduation of our shares to the TSX-V allows greater access for investors at a critical time in the company's growth plan. With this enhanced visibility, we are ready to raise the profile of Berlin -- a remarkable deposit of elements that are central to clean energy. In addition to the historic uranium resource, the deposit contains nickel and phosphate for lithium-ion batteries and vanadium for industrial-scale vanadium redox flow batteries. Our priority in driving the Berlin deposit toward production will focus on improving the efficiency of specific parts of the process flow sheet to further improve the potential economics of the project. We look forward to updating our shareholders on the results of this test work."
Trumbull Fisher, chairman of U3O8, commented: "The funds recently raised allow us to start planning for the advancement of Berlin while looking for opportunities that could enhance our presence in the battery commodity sector. Recent moves by vehicle and battery manufacturers to invest in quality deposits to ensure security of supply of critical elements provides a potential road map for generating interest in and ultimately developing the Berlin deposit."
The Berlin deposit
In addition to uranium, the company's Berlin deposit contains phosphate, nickel and vanadium. Berlin contains a historic mineral resource estimated for U3O8 of over 760,000 tonnes of phosphate in the inferred category. Phosphate is a key element to the lithium ferro-phosphate (LFP) battery that is rapidly gaining market share because it is safe and cost-effective in comparison with other lithium-ion batteries. It is the first lithium-ion battery to fall below a cost of $100 (U.S.) per kilowatt-hour, the price point at which electric vehicles become cost competitive with internal combustion vehicles. Current LFP costs are approaching $80 (U.S.) per kilowatt-hour. BYD Company Ltd., which has now overtaken Tesla Inc. as the world's largest e-vehicle manufacturer, has used LFPs for years. Tesla has also more recently adopted the LFP battery for most of its models, and Ford Motor Company has announced that a range of its models, including the electric F-150 pickup truck, will use the LFP battery.
Berlin contains a historic mineral resource of over 42 million pounds of nickel in the inferred category. Nickel is a key component of lithium/nickel/manganese/cobalt (NMC) and lithium/nickel/cobalt/aluminum oxide (NCA) batteries that are widely used, not only in e-vehicles, but also in many electronics such as mobile phones. Vanadium is used in vanadium redox flow batteries (VRFBs), which are industrial-scale batteries typically housed in shipping containers. Berlin contains a historic mineral resource of over 90 million pounds of vanadium pentoxide in the inferred category. VRFBs have a higher upfront cost than lithium-ion batteries, but most manufacturers provide a 20-year-to-25-year guarantee, so, over the longer term, these batteries are more economic than lithium-ion batteries. VRFBs do not lose their charge capacity significantly over time, in contrast to most lithium-ion batteries, and can be charged and discharged hundreds of thousands of times without degrading significantly. Their niche is support of regional power grids, where they can store excess electricity when demand is low and instantly release power back into the grid as demand picks up. Management believes that VRFBs will likely form a key component to microgrids as a means of stabilizing the electricity production from intermittent sources such as wind and solar. Small modular nuclear reactors are also very well suited to supplying power 24 hours a day, seven days a week into microgrids.
Berlin contains a historic mineral resource of 19.9 million pounds of uranium.
Corporate update
The company is taking several additional steps to broaden its market presence and reach. The company has engaged Momentum IR Corp., a Toronto-based investor relations and corporate communications firm to provide investor relations and advisory services. The initial term of the engagement agreement is for 12 months, with a monthly retainer of $5,000 per month, until Dec. 31, 2022, after which the rate will be reviewed. The company has granted to Momentum 150,000 stock options pursuant to the stock option plan, exercisable at 15.5 cents (being the closing price of the common shares on Aug. 4, 2022), with 25 per cent vesting on each three-month anniversary of the date of the grant, being Aug. 5, 2022. The options, consulting agreement and any changes to the rate of the consulting agreement in 2023 are subject to the approval of the TSX-V. Other than the options, neither the consultant nor any of its directors, officers or employees have any interest, directly or indirectly, in the company or its securities, or any right or intent to acquire such an interest.
Additionally, U3O8 has sought and received approval from its shareholders to change its name to align with the broader focus on elements central to clean energy. The name change is expected to be unveiled in the coming months.
The company has also granted 25,000 stock options to an additional consultant providing corporate secretarial services. Each option is exercisable to acquire one U3O8 common share at an exercise price of 15.5 cents.
Qualified person
The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators.
About U3O8 Corp.
U3O8 is focused on the development of the Berlin deposit in Colombia. Apart from uranium for clean, nuclear energy, the Berlin deposit contains battery commodities, including nickel, phosphate and vanadium. Phosphate is a key component of lithium-ion ferro-phosphate (LFP) batteries that are being used by BYD Company, Tesla, Ford Motor and a growing list of electric vehicle manufacturers. Nickel is a component of various lithium-ion batteries while vanadium is the element used in vanadium redox flow batteries. Neodymium, one of the rare earth elements contained within the Berlin deposit, is a key component of powerful magnets that are used to increase the efficiency of electric motors and in generators in wind turbines.
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