Uranium Resources Announces Extension of Churchrock Sale Agreement
October 03 2016 - 5:00PM
Uranium Resources, Inc. (URI) (Nasdaq:URRE)
(ASX:URI)
, announced today that it has entered an
amendment letter to extend its agreement with Laramide Resources
Ltd. (Laramide) to sell URI’s Churchrock and Crownpoint properties
in New Mexico until November 30, 2016 in exchange for an extension
payment of $250,000 US in cash payable to URI on or before October
21, 2016.
Laramide previously agreed to purchase the
Churchrock and Crownpoint properties for $12.5 million under
certain terms and conditions previously announced. Other than
an extension of the date by which either party could terminate that
Agreement from September 30, 2016 to November 30, 2016, no further
changes are made to the Share Purchase Agreement dated April 7,
2016 filed with the SEC as Exhibit 2.1 to URI’s Form 8-K filed on
April 8, 2016. The $250,000 to be paid on or before October 21,
2016 will be treated as a pre-payment of the $12.5 million purchase
price once the transaction closes, and will not be refunded nor
credited under any other circumstances.
Christopher M. Jones, President and Chief Executive
Officer, said “This demonstration of confidence in closing the
Churchrock sale with Laramide allows us to extend the deadline. We
appreciate the effort and confidence that the Laramide team has and
will put forth.”
About Uranium Resources (URI)
URI is focused on developing energy-related metals.
In addition to both the Sal Rica lithium project and the previously
announced Nina lithium project, URI remains focused on advancing
the Temrezli in-situ recovery (ISR) uranium project in Central
Turkey. URI controls extensive exploration properties under nine
exploration and operating licenses covering approximately 32,000
acres (over 13,000 ha) with numerous exploration targets, including
the potential satellite Sefaatli Project, which is 30 miles (48 km)
southwest of the Temrezli Project. In Texas, the Company has two
licensed and currently idled processing facilities and
approximately 11,000 acres (4,400 ha) of prospective ISR uranium
projects. In New Mexico, the Company controls mineral rights
encompassing approximately 190,000 acres (76,900 ha) in the
prolific Grants Mineral Belt, which is one of the largest
concentrations of sandstone-hosted uranium deposits in the world.
Incorporated in 1977, URI also owns an extensive uranium
information database of historic drill hole logs, assay
certificates, maps and technical reports for the Western United
States.
Cautionary Statement
This news release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are subject to
risks, uncertainties and assumptions and are identified by words
such as "expects," "estimates," "projects," "anticipates,"
"believes," "could," and other similar words. All statements
addressing events or developments that the Company expects or
anticipates will occur in the future, including but not limited to
statements relating to the closing of the transaction with
Laramide, the receipt of the extension payment, and developments at
the Company’s projects are forward-looking statements. Because they
are forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, (a) the Company's
ability to raise additional capital in the future; (b) spot price
and long-term contract price of lithium and uranium; (c) risks
associated with our foreign operations, (d) operating conditions at
the Company's projects; (e) government and tribal regulation of the
uranium industry, the lithium industry, and the power industry; (f)
world-wide uranium and lithium supply and demand, including the
supply and demand for lithium based batteries; (g) maintaining
sufficient financial assurance in the form of sufficiently
collateralized surety instruments; (h) unanticipated geological,
processing, regulatory and legal or other problems the Company may
encounter, including in Utah and Turkey; (i) the ability of the
Company to enter into and successfully close acquisitions or other
material transactions, including closing the proposed transactions
with Laramide and receiving payment under the extension agreement
to the purchase and sale agreement; (j) the ability of the company
to successfully close the transaction with Mesa Exploration
Corporation; (k) and other factors which are more fully described
in the Company's Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, and other filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should any of the Company's underlying assumptions
prove incorrect, actual results may vary materially from those
currently anticipated. In addition, undue reliance should not be
placed on the Company's forward-looking statements. Except as
required by law, the Company disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
Competent Person’s Statement
Technical information in this press release is
based on data reviewed by Dean T. Wilton, who is Chief
Geologist and Vice President of Uranium Resources, Inc. Mr. Wilton
is a “Qualified Person” as defined by Canadian National Instrument
43-101, and a “Competent Person” as defined in the 2012 Edition of
the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves” (JORC Code). He is a
Certified Professional Geologist (CPG-7659), as designated
by the American Institute of Professional Geologists, and is a
Member of the Australian Institute of Geoscientists (MAIG #6384).
Mr. Wilton has appropriate experience that is relevant to the
evaluation of the style of mineral deposits relating to this
document. Mr. Wilton consents to the inclusion in this release of
the matters based on their information in the form and context in
which they appear.
Uranium Resources Contact:
Christopher M. Jones, President and CEO
303.531.0472
Jeff Vigil, CFO and VP Finance
303.531.0473
info@uraniumresources.com
www.uraniumresources.com
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