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Q. I currently hold shares in Uranium Limited, which was acquired by Uranium Participation Corporation on March 30, 2010. How do I exchange my Uranium Limited shares for shares of Uranium Participation Corporation?
A. Uranium Participation Corporation directed its transfer agent to commence the exchange and release of its shares to holders of Uranium Limited Shares on April 13, 2010. Shareholders of Uranium Limited are entitled to 0.50 common shares of Uranium Participation for each Uranium Limited share held. No cash is being paid out. For inquiries regarding how to exchange Uranium Limited shares, please contact:
- Computershare Canadian National Customer Contact Centre at 1.800.564.6253 or service@computershare.com, if you are a Canadian shareholder who holds UL shares beneficially via CDS.
- Computershare Canadian National Customer Contact Centre at 1.800.564.6253 or service@computershare.com, if you are a private registered holder who held physical share certificates.
Q. How is the Net Asset Value (NAV) of Uranium Participation Corporation calculated?
A. At the end of each month, the Manager is obligated under the Management Services Agreement to calculate and disclose the NAV. The NAV is determined by multiplying the quantity of uranium held by or on behalf of the Corporation by the last spot price for uranium for the month published by UxCo, plus cash and any other assets held by the Corporation, less any outstanding payables, indebtedness and all other liabilities of the Corporation and dividing the result by the number of common shares outstanding. Any amounts in U.S. dollars are converted into Canadian dollars based on the noon rate of exchange as published by the Bank of Canada as at the last business day prior to the NAV calculation.
Uranium Participation Corp. is not a mutual fund and an investment in common shares is not redeemable. Morever, the NAV may not necessarily reflect the actual realizable value of uranium held by Uranium Participation Corp. See “Risk Factors - Lack of Investment Liquidity” and “Risk Factors - Net Asset Value” in the Annual Information Form for the fiscal year ended February 29, 2008.
Q. What is the interest of Denison Mines Inc. in Uranium Participation Corporation?
A. Denison is the manager for Uranium Participation Corporation. Denison does not have an ownership interest in Uranium Participation Corporation. All of the Board members of Uranium Participation Corporation are independent of Denison Mines.
Q. Is Uranium Participation Corporation a trader, buying and selling uranium on a regular basis?
A. No. Uranium Participation Corporation was set up for the specific purpose of buying and holding uranium as an investment. The Corporation's objective is to provide investors with method of investing in uranium, in anticipation of the price of uranium gradually increasing over time. While it is not the current intention of the Corporation to do so in the short term, it may subsequently sell some or all of its holdings in uranium.
Q. Can Uranium Participation Corporation purchase U3O8 from Denison Mines Inc., the Manager?
A. Yes. However, the Board of Directors has established a procedure for reviewing transactions in which the Manager may have or appear to have a conflict of interest as follows. If the Manager determines that it would be beneficial for Uranium Participation Corporation to purchase or sell U3O8 from or to the production or inventories of the Manager or McClean Uranium Limited, an affiliated company of the Manager, or another other related party (as such term is defined in Ontario Securities Commision Rule 61-501, as amended, a "Related Party") of the Manager (a "Related Purchase"), then such purchase or sale shall be deemed to be Related Purchase and will require the approval of the majority of the independent directors of Uranium Participation Corporation for all amounts over $1,000,000 in the aggregate.
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