Azarga Uranium Issues Shares to Settle Obligations
GREENWOOD VILLAGE, COLORADO--(Marketwired - Aug 12, 2016) - Azarga Uranium Corp. (TSX:AZZ)(FRANKFURT:P8AA)(OTC PINK:PWURF) ("Azarga Uranium" or the "Company") has issued 2,139,715 common shares, as described below, to settle outstanding obligations. The issuance of the common shares to settle outstanding obligations is consistent with the Company's strategy of preserving cash.
Further to the Company's news releases on 19 May 2016 and 8 July 2016, the Company has issued:
- 56,995 common shares at a deemed price of C$0.60 per common share and 66,015 common shares at a deemed price of C$0.30 per common share to settle deferred compensation owing to three non-insider employees and one consultant in the amount of US$44,400;
- 1,140,626 common shares at a deemed price of C$0.60 per common share to settle US$532,800 of interest owing on the Company's US$1.8 million convertible loan with certain shareholders. Two of the three shareholders are insiders of the Company, while the other shareholder has an arm's length relationship with the Company; and
- 812,500 common shares at a deemed price of C$0.29 per common share as a bonus payment to certain insiders, employees and a former employee, who was an employee when the bonus payment was earned, of the Company.
In addition, the Company has issued 63,579 common shares at a deemed price of C$0.60 per common share to settle insider debts of US$29,699.
The issuance of the common shares is subject to final approval from the Toronto Stock Exchange. Of the common shares issued, 1,229,205 common shares are subject to a hold period expiring on December 13, 2016.
About Azarga Uranium Corp.
Azarga Uranium is a mineral development company that controls six uranium projects, deposits and prospects in the United States of America (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic. The Dewey Burdock Project in South Dakota (the "Project"), which is the Company's initial development priority, has received its Nuclear Regulatory Commission License and the Company is in the process of completing all other major regulatory permit approvals necessary for operation of the Project, including those from the Environmental Protection Agency and the South Dakota Department of Natural Resources.
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Disclaimer for Forward-Looking Information
Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements may include, but are not limited to, statements with respect to the Company's strategy to preserve cash and the Company's continued efforts to obtain all major regulatory permit approvals necessary for operation of the Project. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: (1) the risk that such statements may prove to be inaccurate and (2) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's most recent MD&A filed with Canadian security regulators.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
Contact
John Mays
Chief Operating Officer
+1 303 790-7528
Mark Hollenbeck
Dewey Burdock Project Manager
+1 605 685-3376
info@azargauranium.com
www.azargauranium.com