Uranium Resources Announces $4.5 Million Sale of Common Stock
February 16 2017 - 9:28AM
Uranium Resources, Inc. (NASDAQ:URRE) (ASX:URI), a
leading exploration, development, and uranium production company,
announced today that it has completed a registered direct offering
with Aspire Capital Fund, LLC (“Aspire”) whereby Aspire purchased a
combination of 2,748,101 common shares and pre-funded common stock
purchase warrants at a price of $1.58. Gross proceeds from
the offering were $4.5 million. The common shares and
pre-funded warrants will be issued pursuant to a take-down off the
Company’s existing S-3 Shelf Registration Statement. The
warrants have an exercise price of $0.01 per share and a term of
three years.
Christopher M. Jones, President and Chief
Executive Officer of URI, said,
“Our continued efforts to strengthen our
financial position have resulted in this transaction – a low cost
and high value way to add cash to our treasury. With the
support of our long term funding partner Aspire Capital, we have
taken advantage of stronger capital and uranium markets, and have
enhanced our ability to grow our energy metals business this
year.”
The offering is expected to result in net
proceeds to URRE of approximately $4.5 million. URRE
intends to use the net proceeds from this offering for general
corporate purposes, which may include technical studies,
restoration commitments, capital expenditures and working
capital.
The securities are being offered by the Company
pursuant to an effective shelf registration statement (File No.
333-196880), which was declared effective by the U.S. Securities
and Exchange Commission (the “SEC”) on June 30, 2014. A
prospectus supplement and accompanying base prospectus relating to
the offering will be filed with the SEC. Copies of the
prospectus and prospectus supplement relating to the offering may
be obtained at the SEC’s website, http://www.sec.gov.
This news release does not and shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities, nor shall it constitute an offer, solicitation or
sale in any jurisdiction in which, or to any person to whom, such
offer, solicitation or sale is unlawful.
About Uranium ResourcesURI is
focused on expanding its energy metals strategy, which includes
developing its new lithium business while maintaining optionality
on the future rising uranium price. 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 lithium resources that may be discovered there.
In addition, 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 eight
exploration and operating licenses covering approximately 39,000
acres (over 16,000 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 uranium 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 186,000 acres (75,300 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 information
database of historic drill hole logs, assay certificates, maps and
technical reports for uranium properties located in the Western
United States.
Cautionary StatementThis 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
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)
estimated or expected net cash used in operations, mineral property
expenses, general and administrative expenses, net loss, and cash
and working capital positions for the twelve months ended December
31, 2016, (b) the Company’s ability to raise additional capital in
the future; (c) spot price and long-term contract price of uranium
and lithium; (d) risks associated with our foreign operations, (e)
operating conditions at the Company’s projects; (f) government and
tribal regulation of the uranium industry, the lithium industry,
and the power industry; (g) world-wide uranium and lithium supply
and demand, including the supply and demand for lithium-based
batteries; (h) maintaining sufficient financial assurance in the
form of sufficiently collateralized surety instruments; (i)
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; (j) the ability of the Company to enter into and
successfully close acquisitions or other material transactions;
(k) the results of the Company’s lithium brine exploration
activities at the Columbus Basin and Sal Rica Projects, (l) the
ability of the Company to negotiate extensions on the Cebolleta and
Juan Tafoya leases and (m) 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
303.531.0472
Jeff Vigil, VP Finance and CFO
303.531.0473
Email: Info@uraniumresources.com
Website: www.uraniumresources.com
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