Ur-Energy Inc. Announces Proposed Public Offering of Common Shares

Rhea-AI Summary

Ur-Energy Inc. (NYSE American:URG)(TSX:URE) has announced plans for an underwritten public offering of its common shares. The company intends to grant underwriters a 30-day option to purchase additional shares, up to 15% of the offering. Cantor is acting as the sole book-running manager. Ur-Energy plans to use the net proceeds for:

• Continued ramp-up at Lost Creek
• Development at Shirley Basin
• Possible future acquisitions or strategic transactions
• Working capital and general corporate purposes

The offering is subject to market conditions, with no assurance of completion or final terms. Securities will be offered under a previously filed and effective shelf registration statement.

Positive

• Potential to raise significant capital for operations and expansion
• Funds allocated for development of Lost Creek and Shirley Basin projects
• Flexibility for future acquisitions or strategic transactions
• Strong underwriter support with Cantor as sole book-running manager

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the final size and terms of the offering
• Market conditions may affect the success of the offering

Insights

Financial Analyst

Ur-Energy's announcement of a proposed public offering of common shares is a significant development that warrants close attention from investors. This move suggests the company is seeking to bolster its capital position, likely to support its ongoing operations and expansion plans.

The offering's structure, including the 30-day option for underwriters to purchase additional shares, is a standard practice that provides flexibility in meeting market demand. However, the lack of specific details regarding the size and pricing of the offering introduces uncertainty. This ambiguity could potentially lead to short-term volatility in the stock price as the market attempts to price in the potential dilution.

The stated use of proceeds is broad, encompassing working capital needs, project development and potential acquisitions. This wide-ranging approach gives management significant discretion in capital allocation, which can be both a strength and a risk, depending on execution.

Of particular note is the mention of "possible future acquisitions or other strategic transactions." This suggests that Ur-Energy may be positioning itself for growth beyond its current asset base, which could be a positive catalyst if executed well. However, it also introduces execution risk and the potential for overpayment in a competitive uranium market.

Investors should closely monitor the final terms of the offering when announced, as well as any subsequent use of the raised capital, to assess the long-term impact on Ur-Energy's financial position and growth prospects.

Market Research Analyst

The timing of Ur-Energy's proposed offering is intriguing, given the current dynamics in the uranium market. Global interest in nuclear energy has been resurging, driven by energy security concerns and decarbonization efforts. This backdrop could potentially provide a favorable environment for Ur-Energy's capital raise.

However, it's important to consider the competitive landscape. Several uranium producers have been ramping up production or restarting mothballed mines in response to improving market conditions. Ur-Energy's move to strengthen its financial position could be seen as a strategic step to ensure it remains competitive in this evolving market.

The company's mention of "continued ramp-up at Lost Creek" and "development at Shirley Basin" aligns with the broader industry trend of increasing production capacity. This suggests Ur-Energy is positioning itself to capitalize on potential future demand growth in the uranium market.

Investors should be aware that while the uranium market outlook appears positive, it remains subject to significant regulatory and geopolitical influences. These factors can rapidly alter market dynamics and affect the profitability of uranium producers like Ur-Energy.

The success of this offering and Ur-Energy's subsequent capital deployment will be critical in determining the company's competitive position in the coming years. Market participants should closely monitor industry supply-demand balances and regulatory developments to assess the potential return on this capital raise.

LITTLETON, CO / ACCESSWIRE / July 25, 2024 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) ("Ur‑Energy") announced today that it intends to offer and sell its common shares in an underwritten public offering. In connection with this offering, Ur-Energy expects to grant the underwriters a 30-day option to purchase additional common shares, equal to up to 15% of the number of securities sold in the offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All of the securities in the offering are to be sold by Ur-Energy.

Cantor is acting as the sole book-running manager for the offering.

Ur-Energy anticipates using the net proceeds from the offering to supplement working capital for the continued ramp-up at Lost Creek, to support development at Shirley Basin, for possible future acquisitions or other strategic transactions and for working capital and general corporate purposes, although its management will have broad discretion in the application of the net proceeds of the offering. Ur-Energy frequently evaluates acquisition opportunities to expand its portfolio of uranium projects.

The securities described above are being offered by Ur-Energy pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on July 19, 2023. A preliminary prospectus supplement and the accompanying prospectus relating to the securities being offered will be filed with the SEC on July 25, 2024 and will be available on the SEC's website at http://www.sec.gov. Copies of the preliminary prospectus supplement (when available) and accompanying prospectus may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by e-mail at prospectus@cantor.com.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About Ur-Energy:

Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. Ur-Energy has produced and packaged approximately 2.7 million pounds U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, its second in situ recovery uranium facility in Wyoming and is advancing Shirley Basin construction and development following its March 2024 ‘go' decision for construction of the mine. Ur-Energy awaits the remaining regulatory authorization for the expansion of Lost Creek. Ur‑Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.

Cautionary Note Regarding Forward-Looking Statements:

This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., the size and closing date of the proposed offering, the grant to the underwriters of the option to purchase additional shares and the use of proceeds from the offering) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as other factors described in the public filings made by Ur-Energy at www.sec.gov and www.sedarplus.ca. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.

For further information, please contact:

John W. Cash, Chairman, CEO and President
+1 720-981-4588, ext. 303
John.Cash@Ur-Energy.com

SOURCE: Ur-Energy Inc.

View the original press release on accesswire.com

FAQ

What is the purpose of Ur-Energy's (URG) proposed public offering?

Ur-Energy (URG) intends to use the net proceeds from the offering to fund the ramp-up at Lost Creek, support development at Shirley Basin, explore possible acquisitions or strategic transactions, and for working capital and general corporate purposes.

How much additional stock can underwriters purchase in Ur-Energy's (URG) offering?

Ur-Energy (URG) expects to grant the underwriters a 30-day option to purchase additional common shares, equal to up to 15% of the number of securities sold in the offering.

Who is managing Ur-Energy's (URG) public offering announced on July 25, 2024?

Cantor is acting as the sole book-running manager for Ur-Energy's (URG) proposed public offering of common shares.

When was Ur-Energy's (URG) shelf registration statement declared effective by the SEC?

Ur-Energy's (URG) shelf registration statement on Form S-3 was declared effective by the Securities and Exchange Commission (SEC) on July 19, 2023.