April 14, 2010 (FinancialWire) — Uranium Energy Corp (AMEX: UEC) said it has received a cash payment of $11 million as complete consideration for the sale of the company's 49% interest in Cibola Resources LLC to Neutron Energy, Inc.

Nevada-based Neutron has exercised its option to make this purchase in accordance with an option agreement between Uranium Energy and Neutron reported on November 12, 2009, which was subsequently extended.

Amir Adnani, President and CEO of Uranium Energy said that, as a consequence of the deal, “the company's balance sheet is now in a strong position with working capital of over $26 million and no debt.”

He added that Uranium Energy plans to apply the proceeds from the sale directly to expand an opportunity in Texas, where Uranium Energy is effecting a regional strategy of developing satellite ISR uranium projects to feed the company's Hobson central processing plant.

Until Neutron's exercise of the option, the company and Neutron had been parties to a limited liability company members' agreement and a limited liability company operating agreement — both made in April 2007 — relating to the formation, operation and governance of the LLC under the Delaware Limited Liability Company Act.

The LLC holds interests in certain real estate, surface and mineral fee interests in, and technical and financial data pertaining to, the South L Bar Tract and the St. Anthony Tract, covering 6,717 acres located in Cibola County, New Mexico, and collectively known as the Cebolleta uranium project.

Texas-based Uranium Energy is an exploration and development company with the objective of near-term uranium production in the U.S. The company's Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, and the Goliad in-situ recovery project, which it said is in the final stages of mine permitting for production.

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