U.S. Energy Corp. and Crested Corp. Announce Completion of Sale of Uranium One, Inc. Holdings
(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)
US Energy Corp.
877 N. Eighth St. W.
Riverton, WY, 82501
Press release date: July 27, 2007
CONSOLIDATED CASH BALANCES CURRENTLY EXCEED $100 MILLION
RIVERTON, Wyo., July 27 / -- U.S. Energy Corp. (NASDAQ:USEG) and Crested Corp. (BULLETIN BOARD: CBAG) , announced today that they have liquidated all of their shares of Uranium One, Inc. (TSE and JSE: SXR) related to their uranium assets sale on April 30, 2007. On May 1, 2007 USEG and CBAG liquidated 4.4 million shares of the 6,607,605 shares received on April 30, 2007. The net cash received from that transaction on a consolidated basis and as previously announced, totaled $61,044,600, or US $13.87 per share. On Thursday, July 26, 2007, USEG and CBAG received final net proceeds from the sale of their remaining 2,207,605 shares of $29,679,400 on a consolidated basis, or US $13.45 per share. The final sale of USEG's and CBAG's Uranium One shares was executed on July 12, 2006 and settled on July 26, 2007. In addition to the receipt of funds from the sale of Uranium One shares, USEG and CBAG also recently received approximately $7,300,000 in funds from various agencies related to the release of various uranium asset reclamation bonds that were assumed by Uranium One.
USEG and CBAG's remaining uranium asset is a 4% Net Profits Interest on the reportedly 50 million pound uranium deposit at Green Mountain in Wyoming, which is owned by Rio Tinto, Inc. Additionally, if certain conditions are met by Uranium One under its Asset Purchase Agreement with USEG and CBAG, the companies stand to receive up to an additional $40 million in cash payments from Uranium One in the future.
"The sale of our shares of Uranium One in no way reflects any lack of confidence in Uranium One executing on their business plan to become a major global uranium producer. Rather, it is illustrative of our corporate vision to build our cash position and avoid speculation in the securities markets," stated Mark J. Larsen, President of USEG. "With over $100 million in cash in the bank, our goal is to invest and leverage our resources effectively into select mineral investments including oil and gas, that can deliver recurring revenues to our shareholders. Meanwhile, we will continue to focus very strongly on working closely with our operating partner, Kobex Resources Ltd., to advance our 'world class' Lucky Jack molybdenum project," he added.
Source: U.S. Energy Corp.
CONTACT:Keith G. Larsen, CEO, or Mark J. Larsen, President, both of U.S. Energy Corp., +1-307-856-9271