Uranium One Closes $155M Convertible Debenture Offering

Uranium One Inc. completed a public offering on December 20, 2006 of $155,250,000 aggregate principal amount of convertible unsecured subordinated debentures due December 31, 2011. The debentures bear interest at a rate of 4.25 per cent per annum payable semi-annually, and are convertible at the option of the holder into common shares of Uranium One at a conversion rate of 50 common shares per $1,000 principal amount of debentures, which is equal to a conversion price of $20 per common share, subject to adjustment in certain circumstances.

The entire offering was sold on a bought deal basis to a syndicate of underwriters led by BMO Capital Markets and consisting of Canaccord Capital Corporation, GMP Securities L.P., Orion Securities Inc., Sprott Securities Inc., Wellington West Capital Markets Inc., Raymond James Ltd. and Toll Cross Securities Inc.

Uranium One is a Canadian uranium and gold resource company, which intends to use the net proceeds of the offering to finance the construction of its Dominion uranium mine, exploration and general corporate purposes.

Uranium One was advised in this transaction by John Turner, Bozidar Crnatovic, Krisztian Toth and Amanda Field of Fasken Martineau DuMoulin LLP. The underwriters were advised by Quentin Markin, Rhoda Aylward and Sarah Rancier of Stikeman Elliott LLP.