Uxa Resources Ltd : Sale of US Logging Business

13 November 2012

ASX/ Media Release

SALE OF US LOGGING BUSINESS

The Board of UXA Resources Limited (ASX: UXA) has accepted a cash offer for the purchase of UXA's wholly owned logging business in the United States of America, Geoscience Services USA Inc, a division of GAA Wireline (GAA).
GAA's US business provides Prompt Fission Neutron (PFN) logging services to the uranium industry, principally in Wyoming and Texas. Logging operations servicing US clients will be unaffected by the change of ownership.
The all cash offer of US$350,000 is to purchase the assets and business of Geoscience Services USA Inc. The new owners will also take over the US bank finance on a new logging truck brought into service earlier this year. The purchasers are a group of GAA Wireline's managers lead by UXA Non-Executive Director David Sutich and GAA Wireline CEO David Quinn. As such the sale of the business will require shareholder and other approvals.
The sale includes the rights to use the PFN technology in North and South America, in exchange for a revenue-based royalty. The sale will have no effect on GAA's Australian operations or its ownership of the PFN technology.
UXA will arrange for an independent valuation of the business and shareholder meeting to approve the sale of the business as soon as possible.
Commenting on the plans, UXA Resources' Chairman Mr Neill Arthur said:
"The sale of GAA's US business is part of the re-structuring of UXA, to reduce debt and re- finance the company through a combination of assets sales and capital raisings."
For further information contact:
Neill Arthur
Chairman
Or
Dr Russell Penney

Managing Director.

Tel: [phone]

Email: [e-mail]

Website: www.uxa.com.au

More information on UXA can be found on our website at www.uxa.com.au

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