Golden Minerals

Uranium Participation Corporation Reports Estimated Net Asset Value at August 31, 2019 and Sale of Conversion Services

TORONTO, Sept. 9, 2019 /CNW/ - Uranium Participation Corporation ("UPC") (TSX:U) reports its estimated net asset value at August 31, 2019 was CAD$607.0 million or CAD$4.40 per share. As at August 31, 2019, UPC's uranium investment portfolio consisted of the following:

(in thousands of Canadian dollars, except quantity amounts)

 

Quantity

Fair Value

       

Investments in Uranium:

     

Uranium oxide in concentrates ("U3O8")

 

  15,249,514  lbs

$

512,938

Uranium hexafluoride ("UF6") 

 

       700,000  KgU

$

80,036

     

$

592,974

       

U3O8 fair value1 per pound:

     

- In Canadian dollars1

   

$

33.64

- In United States dollars

   

$

25.30

UF6 fair value1 per KgU:

     

- In Canadian dollars1

   

$

114.34

- In United States dollars

   

$

86.00

1 Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada's month-end daily exchange rate of $1.3295.

On the last trading day of August 2019, the common shares of UPC closed on the TSX at a value of CAD$4.25, which represents a 3.41% discount to the net asset value of CAD$4.40 per share.

On July 24, 2019, the Corporation entered into an agreement with a primary UF6 conversion supplier to sell the conversion components contained in 417,230 KgU as UF6. The sale was completed on August 9, 2019 and resulted in the exchange of 417,230 KgU as UF6 for 1,090,160 pounds U3O8 plus cash consideration and beneficial storage arrangements.

About Uranium Participation Corporation

Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates ("U3O8") and uranium hexafluoride ("UF6") (collectively "uranium"), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on UPC's website at www.uraniumparticipation.com.

Caution Regarding Forward-Looking Information

This press release contains certain forward-looking statements and forward-looking information that are based on UPC's current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intent", "estimate", "anticipate", "plan", "should", "believe" or "continue" or the negative thereof or variations thereon or similar terminology and include statements with respect to UPC's investment objectives, the transactions entered into with third parties, and agreements with respect to the storage of the UPC's uranium holdings.

By their very nature, forward-looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of UPC, may cause actual results to differ materially from the expectations expressed in the forward-looking statement. These factors include, but are not limited to, changes in commodity prices and foreign exchange as well as the risk that UPC will not obtain the anticipated benefits of its agreements with third parties. For a description of the principal risks of UPC, see "Risk Factors" in UPC's Annual Information Form dated May 6, 2019 for the year ended February 28, 2019, a copy of which is available at www.sedar.com.

These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward-looking statements. Except where required under applicable securities legislation, UPC does not undertake to update any forward-looking information statement.

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