LITTLETON, Colo., Oct. 21, 2020 /PRNewswire/ -- Ur-Energy
Inc. (NYSE American:URG)(TSX:URE) (the "Company" or
"Ur-Energy") is pleased to announce it has completed amendments to
its State of Wyoming Bond Loan to defer further principal payments
for an additional 18 months, which represents a savings of
approximately $7.83 million during
the extension. With the amendments to the Bond Loan, we will
continue to make interest-only payments until October 2022, when we will resume principal and
interest payments until the loan is fully repaid.
Ur-Energy CFO Roger Smith said,
"We continue to be grateful to State Treasurer Meier, the
Sweetwater County Board of County
Commissioners, and officials at all levels in Wyoming who are working so diligently to serve
their constituency. The support they have shown for the uranium
industry and for Lost Creek has been unwavering. They continue to
champion our resolve to return to full production operations at
Lost Creek when market conditions warrant."
In addition to the restructuring of the State Bond Loan, we have
continued to implement other Company-wide cost-saving measures as
we await the recommended relief from the US Nuclear Fuel Working
Group report and further positive developments in the uranium
markets. Recently, we further reduced production operations at Lost
Creek to market-appropriate levels. The reduced production levels
allowed us to make further operating cost reductions at Lost Creek
and related support cost reductions at the corporate office. The
cost reductions include savings from additional reductions in force
at both locations as well as other cost containment measures.
Together with the further deferral of principal payments on the
State Bond Loan, these measures will result in substantial savings
to the Company, estimated to exceed $7
million and $4 million in
calendar years 2021 and 2022, respectively.
Ur-Energy continues to support ongoing efforts in Washington D.C. to reinvigorate the uranium
production industry and secure a healthy nuclear fuel cycle for the
country. Again, the elected officials of Wyoming lead these efforts. Senator Barrasso
and Representative Cheney have each introduced legislation to
authorize a uranium reserve to support America's nuclear reactors
with domestically produced fuel. Their legislative efforts are
designed to revitalize the country's nuclear infrastructure and
echo the recommendations made by the US Nuclear Fuel Working
Group report.
We also commend Senator Barrasso's effort to codify the recent
extension of the Russian Suspension Agreement (RSA). The newly
completed RSA amendment continues caps on Russian imports of
nuclear fuel to the US for an additional 20 years, through 2040.
The amendment reduces the current cap of 20% of demand to an
average of 17% of demand over the 20-year period, with reductions
starting in 2028 and continuing through 2040. The amendment also
closes other practical loopholes to protect the US market, provides
for administrative reviews during the term and contemplates
potential extensions.
We will provide further guidance for Q4 2020 in our Form 10-Q,
which is currently anticipated to be filed on Friday, October 30, 2020.
About Ur-Energy
Ur-Energy is a uranium mining company
operating the Lost Creek in-situ recovery uranium facility
in south-central Wyoming. We have
produced, packaged and shipped more than 2.6 million pounds from
Lost Creek since the commencement of operations. Applications are
under review by various agencies to incorporate our LC East project
area into the Lost Creek permits and to operate at our Shirley
Basin Project. Ur-Energy is engaged in uranium mining, recovery and
processing activities, including the acquisition, exploration,
development and operation of uranium mineral properties in
the United States. Shares of
Ur–Energy trade on the NYSE American under the symbol "URG" and on
the Toronto Stock Exchange under the symbol "URE." Ur-Energy's
corporate office is in Littleton,
Colorado; its registered office is in Ottawa, Ontario. Ur-Energy's website is
www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda
Chairman & CEO
866-981-4588
Jeff.Klenda@Ur-Energy.com
Cautionary Note Regarding Forward-Looking
Information
This release may contain "forward-looking
statements" within the meaning of applicable securities laws
regarding events or conditions that may occur in the future
(e.g., timing and results of implementation of the
recommendations from the U.S. Nuclear Fuel Working Group and
pending legislation, including the budget appropriations process
related to direct purchase for the establishment of the national
uranium reserve; the impact of the extended and amended Russian
Suspension Agreement to safeguard the U.S. markets; whether the
additional cost-savings measures will be sufficient) and are based
on current expectations that, while considered reasonable by
management at this time, inherently involve a number of significant
business, economic and competitive risks, uncertainties and
contingencies. Factors that could cause actual results to differ
materially from any forward-looking statements include, but are not
limited to, capital and other costs varying significantly from
estimates; failure to establish estimated resources and reserves;
the grade and recovery of ore which is mined varying from
estimates; production rates, methods and amounts varying from
estimates; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals; inflation;
changes in exchange rates; fluctuations in commodity prices; delays
in development and other factors described in the public filings
made by the Company at www.sedar.com and www.sec.gov. Readers
should not place undue reliance on forward-looking statements. The
forward-looking statements contained herein are based on the
beliefs, expectations and opinions of management as of the date
hereof and Ur-Energy disclaims any intent or obligation to update
them or revise them to reflect any change in circumstances or in
management's beliefs, expectations or opinions that occur in the
future.
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SOURCE Ur-Energy Inc.