Uruguay Mineral Exploration Inc is an integrated gold production and exploration company which has been operating in Uruguay since 1996. Key features of the Company are:
• Its Minas de Corrales gold operation producing at a rate of approximately 100,000 ounces per annum.
• Significant potential to increase near mine gold resources and develop other gold operations in Uruguay.
• It is the leading mineral exploration company in Uruguay, and has a first class exploration portfolio, covering gold, base metals and diamond prospects.
The Company was incorporated in October 1996 as 713257 Alberta Inc. pursuant to the Business Corporations Act (Alberta) and in January 1997 changed its name to Uruguay Goldfields Inc (“UGI”). In February 2002, it again changed its name to Uruguay Mineral Exploration Inc.
In March 2000, the Common Shares of the Company were admitted for listing on the Canadian Venture Exchange. In June 2002, the Canadian Venture Exchange was acquired by The Toronto Stock Exchange and its name was changed to the TSX Venture Exchange, where the Company’s common shares now trade under the symbol “UME”.
In October 2003 the Company purchased the Uruguayan subsidiaries of Crystallex International Corporation. The consideration for the acquisition comprised cash of US$2 million, payment of $US 2.7 million in outstanding debt and hedging obligations and the assumption of employee and environmental obligations. The assets acquired included a 1.2 million tonne per annum gold treatment facility and the San Gregorio Gold Project.
During 2004 the Company discovered the Arenal deposit approximately 4 km from the San Gregorio process plant. The permit to mine the Arenal pit was received in September, 2004, and mining commenced in October 2004.