Uranium Resources to Retire $8M Indebtedness with RCF
December 05 2016 - 8:27PM
Uranium Resources, Inc. (Nasdaq:URRE) (ASX:URI),
an energy metals development company, announced today a deal to
retire its $8 million in indebtedness due to Resource Capital Fund
V L.P. (RCF). Under the deal, an investor has purchased an
initial $2.5 million amount of notes from RCF and has entered into
an agreement to exchange these notes for shares of URI’s common
stock. The investor has also agreed to purchase the remaining $5.5
million of notes from RCF and exchange such notes for shares of
URI’s common stock subject to certain conditions, as described
below. Concurrently, RCF has also agreed to extend the maturity
date for the indebtedness from December 31, 2016 until March 31,
2017 in order to allow the process to be completed in an orderly
fashion.
Christopher M. Jones, President and Chief
Executive Officer, said, “With the execution of these agreements
and with the anticipated favorable support of the stockholders, URI
can be debt free after the process completes in the spring of 2017,
allowing us to invest in the growth of our business. We
appreciate the efforts by RCF in making this major improvement to
our balance sheet possible. In spite of difficult capital
markets, URI has been able to fundamentally change our business
model – both from a financial perspective and from a growth
perspective with our energy metals development business.”
The retirement of the indebtedness will occur in
two tranches:
- Tranche 1 initially consists of approximately $2.5 million in
URI shares to be issued to the investor over a 75-day pricing
period, which commenced on December 5, 2016. Pricing of these
shares will be calculated on the basis of the VWAP over the pricing
period. The investor may acquire additional notes from RCF
and exchange them for shares during the first pricing period so
long as the total number of shares issued by URI does not exceed
19.9% of URI’s outstanding common stock.
- Tranche 2 will consist of the exchange of the remaining notes
over a second 75-day pricing period, which period will commence
following stockholder approval of the issuance of additional shares
of URI’s common stock pursuant to Nasdaq rules, which is
anticipated to occur by February 2017.
Throughout the two tranche process, the investor
has agreed to maintain its ownership of URI shares at less than 10%
of URI’s outstanding shares.
A complete description of the agreement between
URI, RCF and the investor will be set forth in the Company's
Current Report on Form 8-K filed with the SEC.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
About Uranium Resources
URI is focused on developing energy-related
metals. The Company has developed a dominant land position in
two prospective lithium brine basins in Nevada and Utah in
preparation for exploration and potential development of any
resources that may be discovered there. URI remains focused
on advancing the Temrezli in-situ recovery (ISR) uranium project in
Central Turkey when uranium prices permit economic development of
this project. URI controls extensive exploration properties in
Turkey 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 future exchanges with the
investor, stockholder approval of additional stock issuances by
URI, and developments at the Company’s projects, including future
exploration costs and results, 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 uranium and lithium; (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 in the jurisdictions where the Company operates,
including in Texas, New Mexico, Utah, Nevada and Turkey; (i) the
ability of the Company to enter into and successfully close
acquisitions or other material transactions, including closing the
proposed transaction with Laramide; (j) the results of the
Company’s lithium brine exploration activities at the Columbus
Basin and Sal Rica Projects, and (k) 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.
Uranium Resources
Contact: |
|
Christopher M. Jones, President and
CEO |
Jeff Vigil, VP Finance and CFO |
303.531.0472 |
303.531.0473 |
|
|
Email: Info@uraniumresources.com |
|
Website:
www.uraniumresources.com |
|
Westwater Resources (NASDAQ:WWR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Westwater Resources (NASDAQ:WWR)
Historical Stock Chart
From Apr 2023 to Apr 2024