RE: T.AAB looking to take over V.UWEThis smells a bit foul for my taste.
Shortly before UWE will get a resource estimate, transforming their assets into money, ABB wants to take over management.
I wonder if the poison pill and the constant selling pressure on low volume has anything to do with ABBs plans in the past and future?
I am also not happy with the current share price and the public relations of UWE.
This play surely could be promoted much better. The last news releases were all good, though a bit too technical for my taste.
Anyhow, I think the management is working very good to put the original businesss plan in time and budget to reality.
I find the answer they published today very good formulated and I will follow their arguments:
U3O8 opposes Aberdeen's board takeover gambit
2008-06-18 09:48 ET - News Release
Mr. Richard Spencer reports
U3O8 CORP. HIGHLIGHTS ITS EXPLORATION STRATEGY AND SIGNIFICANT URANIUM RESULTS IN RESPONSE TO THE ANNOUNCEMENT MADE BY ABERDEEN INTERNATIONAL
U3O8 Corp. has responded to Aberdeen International Inc.'s proposal, in a news release issued in Stockwatch on June 16, 2008, of its own slate of nominees for election to the board of directors of U3O8 at the company's annual and special meeting of shareholders to be held next week on June 26, 2008.
U3O8's board of directors and management intend to vigorously oppose Aberdeen's efforts to gain control of the company without providing any consideration to shareholders and by attempting to solicit proxies in support of its efforts without providing adequate disclosure to U3O8's shareholders.
Contrary to the assertions in Aberdeen's news release, U3O8's board of directors and management team have demonstrated a disciplined exploration strategy designed to build near- and long-term value for shareholders, and the company has achieved significant results in short order.
Specifically, U3O8 has aggressively pursued twin exploration objectives aimed at an accelerated program to confirm and expand Areva's previously discovered basement-hosted uranium mineralization in order to achieve early returns, while exploring the potential for significant unconformity deposits in the Roraima basin in Guyana, South America -- a geological look-alike to the world's largest uranium resource in Canada's Athabasca basin.
Progress made to date toward a significant discovery can be measured by U3O8's achievements, which include the following:
- Within six months of its initial public offering in December, 2006, U3O8 was fully operational and drilling its first targets.
- U3O8 is planning to release its first resource estimates for basement-hosted uranium by the end of 2008 -- within two years of its public offering, which attests to the company's aggressive exploration approach.
- Relatively high-grade uranium mineralization has been reported in the Aricheng South and Accori North C target areas. Furthermore, magnetic data show that Accori North C lies on the same 10-kilometre-long structure as Aricheng South, which raises the possibility that other parts of that same structure are mineralized. Seven similar structures have been identified in the magnetic data. Three of these have been partially explored and contain significant uranium grades, and the other four structures will be investigated in due course. These results validate U3O8's exploration concept that multiple uranium-bearing veins in the basement of the Roraima basin form part of a structural network that may contain a total resource of significant and potentially economic size.
- Identification of the structural framework in the basement of the Roraima basin advances U3O8 from essentially following up on Areva's prior discoveries to more predictive exploration, whereby the location of mineralization in one structure may be used to identify prospective sectors in another.
- Exploration is under way on the first of eight unconformity targets, and scout drilling will start in the second half of 2008. The small size of high-grade unconformity uranium deposits make them difficult to find, and millions of dollars can easily be spent without a discovery being made. Therefore, U3O8 first undertook the fundamental background work critical to refining its exploration focus in order to optimize the possibility of making a discovery and avoid rushing into exploration without the discipline and focus that resource discovery demands.
While U3O8, like many companies, has been subject to the recent overall decline of the North American capital markets in general and the uranium sector in particular, the company has steadfastly maintained focus on its priority -- the creation of value by diligently executing its two-pronged exploration objectives in order to achieve near-term success on its basement-hosted deposits, while taking a judicious approach in exploring for unconformity-related uranium in the Roraima basin.
Aberdeen International acknowledges that the share prices of many uranium companies have come under pressure, but focuses on the fact that U3O8 is trading below cash. This is not uncommon in the junior resource sector. For example, Aurelian Resources, a company founded by two current board members of U3O8, traded at a discount to cash until Aurelian discovered a world-class gold deposit. U3O8's directors, as fellow shareholders owning more than 14 per cent of U3O8 shares, are committed to supporting management's technical work to create value through new discoveries with the shared goal of enhancing value for all stakeholders.
Aberdeen International's attempt to take control of U3O8 at this time is an opportunistic play, which seeks to exploit current market conditions and U3O8's solid cash position. U3O8 agrees that the uranium sector presents opportunities for consolidation, which is why the company is reviewing potential acquisitions and joint ventures in the Americas that complement its current exploration focus in Guyana. Pending any such acquisition, U3O8's exploration is focused on maximizing the immediate opportunities presented by its highly prospective assets in the mining-friendly jurisdiction of Guyana, an English-speaking democracy with an established mining regime and without many of the regulatory challenges that the uranium industry faces in other jurisdictions.
U3O8's significant accomplishments to date can only be attributed to the focused and experienced leadership of the company's executive team directed by a seasoned board of directors, which together have more than 130 years of global exploration and technical, financial and business expertise. In particular, U3O8's management and board of directors bring extensive knowledge, local relationships and operational experience in South America and a proven record of making discoveries. Members of the board have been involved with the discovery of 16 million ounces of gold (Fruta Del Norte and Quimsacocha) with an in situ value exceeding $10-billion as well as the Mirador and San Carlos copper deposits in Ecuador with a similar in situ value.
The mining, geological, business and financial qualifications of the current board of directors and management of U3O8 are highlighted below:
Patrick Anderson -- director:
- A geologist with over 12 years exploration experience on gold, base metals and diamond projects in South America, North America and Europe, Mr. Anderson is president, chief executive officer and co-founder of Aurelian, with a 13.7-million-ounce gold discovery made in 2006.
Dr. Keith Barron, BSc, PhD -- director and founder:
- A geologist with over 24 years experience on a wide variety of commodities, including gold, base metals and diamond projects in Australia, Canada, Venezuela, Brazil, Guyana, South Africa and Ecuador, Dr. Barron is co-founder and former director of Aurelian.
Bryan Coates, CA -- director:
- A chartered accountant with 20 years mining experience, and mergers and acquisition expertise, Mr. Coates is currently vice-president, finance, and chief financial officer of Osisko Exploration. He has prior senior financial positions at IAMGOLD Corp. and Cambior, and has been involved in the development of one of the world's largest base metals mines at Compania Minera South America as well as in the development and operation of Omai gold mines, one of Guyana's largest-scale mining operations.
David Constable, BSc, MBA, PGeo, FGAC -- director:
- A geologist with over 25 years experience with Canadian and international exploration and development with the Noranda Group and the Ontario Ministry of Northern Development and Mines, Mr. Constable has managed his own geological consulting firm and is currently vice-president, investor relations, and corporate secretary of FNX Mining, one of Canada's largest base metal producers.
Dr. Richard Spencer, BSc, PhD, PGeo -- director, president and chief executive officer:
- A geologist with over 20 years of global exploration experience in South Africa, Ecuador, Peru, Colombia, Argentina, Brazil and Venezuela, Dr. Spencer has held senior positions at Crystallex International and IAMGOLD, and has been instrumental in the discovery of the 2.8-million-ounce gold deposit at Quimsacocha and the cluster of copper-molybdenum porphyries that contain a resource exceeding one billion tonnes and form part of the Corriente copper belt in Ecuador.
Rick Cleath, BSc, MSc -- vice-president (Guyana):
- A geologist with over 22 years of global exploration experience, including over 12 years in Latin America, Mr. Cleath was most recently vice-president of exploration with Absolut Resources, where he negotiated and acquired the Chaparra mesothermal gold vein project in southern Peru.
Seth Blume, BSc -- country manager (Guyana):
- A geologist with over 16 years extensive exploration and management experience, including 12 years in Guyana, Mr. Blume holds expertise in logistics and the regulatory requirements of Guyana.
Carmelo Marrelli, CA, CGA -- chief financial officer:
- A chartered accountant and certified general accountant, with eight years financial experience in the mining sector, Mr. Marrelli is a partner with Marrelli & Drake Corporate Services.
Nancy Chan-Palmateer -- vice-president, investor relations:
- Having over 15 years experience in both the North American and European capital markets, and having lead investor relations and communications strategies through public listings, multiple acquisitions, issues management and regulatory development, Ms. Chan-Palmateer was most recently director of investor relations for TSX, Nasdaq and LSE-listed CryptoLogic Inc.
Voting in favour of U3O8's nominees
U3O8 strongly encourages shareholders to carefully consider the significant results accomplished to date and the qualifications of the current board of directors and management in making its decision to vote in favour of the current board of directors.
Shareholders are urged to reaffirm their support for the company's existing directors by submitting their white form of proxy that was enclosed with the information circular sent by U3O8 in connection with the annual meeting, and vote in favour of the re-election of U3O8's slate of director nominees. Shareholders with any questions, or requiring assistance in obtaining a replacement proxy or in completing their proxy form, are asked to contact Nancy Chan-Palmateer, vice-president, investor relations, at U3O8 at 416-868-1491 or nancy@u3o8corp.com. Shareholders' votes are extremely important to ensure that U3O8 stays on course. U3O8 must receive a white proxy form no later than 4:30 p.m. (Eastern Time) on Tuesday, June 24, 2008, for the shareholder's vote to be counted. The company recommends voting by Internet, telephone or facsimile today, or at least 24 hours in advance of the proxy cut-off.
We seek Safe Harbor.