Uranium Resources Closes $5 million in Funding with Resource Capital Fund V L.P.
Uranium Resources, Inc. (NASDAQ: URRE) (URI), announced today that, on
September 5, 2012, it closed the $5 million financing with Resource
Capital Fund V L.P. ('RCF?), pursuant to its investment agreement with
RCF. URI exercised the $5 million option on August 31, 2012 in
conjunction with the closing of its acquisition of Neutron Energy, Inc.
RCF purchased 9,691,801 shares of URI common stock at a price of $0.5159
per share. The share price was based on the volume weighted average
trading price of URI common stock on the NASDAQ Capital Market for the
20 trading days prior to the closing of the Neutron merger.
'The total investment made by RCF in URI we believe is a confirmation of
the value inherent in our uranium assets and production potential in New
Mexico as well as the strong outlook on the uranium market in general,?
commented Don Ewigleben, President and CEO of URI. 'We expect that
global demand for nuclear power will continue to expand as emerging
economies require measurably greater amounts of electric power and this
will more than offset declines in somewhat stagnant developed economies.
We believe this demand will drive price as supplies are not able to keep
pace and URI will be in a position to capitalize on this environment.?
Mr. Ewigleben continued, 'Over the past few years, URI has undertaken
many initiatives to position the Company for the long-term. We now have
more than 154 million pounds of in-place mineralized uranium material,
an underground injection control permit and NRC license to conduct ISR
mining at the Churchrock Section 8 area, and we continue to be in
meaningful discussions with the Navajo Nation regarding a comprehensive
agreement regarding the production of uranium. Once an agreement with
the Navajo is reached, we will look to secure the needed capital for the
Churchrock project and initiate construction activities. Given interest
from various investors and potential strategic partners, we believe we
will be able to obtain the required funding for the project.?
In total, RCF invested $35 million in URI, which included participating
in the Neutron acquisition by contributing $20 million to retire the
majority of Neutron′s debt and an additional total of $15 million in
financing to URI. URI now has 158.7 million shares outstanding, with RCF
beneficially owning 44.6 million shares, or 28.1%, of the outstanding
shares of URI common stock.
About Uranium Resources, Inc.
Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced over 8 million pounds of
uranium by in-situ recovery (ISR) methods in the state of Texas. URI has
over 206,600 acres of uranium mineral holdings and 152.9 million pounds
of in-place mineralized uranium material in New Mexico and an NRC
license to produce up to 1 million pounds of uranium per year. URI has
an additional 1.3 million pounds of in-place mineralized uranium
material in Texas and South Dakota. The Company acquired these
properties over the past 20 years along with an extensive information
database of historic drill hole logs, assay certificates, maps and
technical reports. None of URI′s properties is currently in production.
URI′s strategy is to fully develop its resource base in New Mexico and
Texas, expand its asset base both within and outside of New Mexico and
Texas, partner with larger mining companies that have undeveloped
uranium assets or with junior mining companies that do not have the
mining experience of URI, as well as provide restoration expertise to
those that require the capability or lack the proficiency.
Uranium Resources routinely posts news and other information about the
Company on its website at www.uraniumresources.com.
Safe Harbor 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 operating performance, events, or developments
that the Company expects or anticipates will occur in the future,
including but not limited to statements relating to the Company′s
mineralized uranium materials, timing of receipt of mining permits,
production capacity of mining operations planned for properties in South
Texas and New Mexico, planned dates for commencement of production at
such properties, revenue, cash generation and profits 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, the spot price and long-term contract price of uranium,
weather conditions, operating conditions at the Company′s mining
projects, government regulation of the mining industry and the nuclear
power industry, world-wide uranium supply and demand, availability of
capital, timely receipt of mining and other permits from regulatory
agents and other factors which are more fully described in the Company′s
documents filed 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.
Investors:
Kei Advisors LLC
Deborah K. Pawlowski,
716-843-3908
dpawlowski@keiadvisors.com
or
Media:
Uranium
Resources, Inc.
Mat Lueras, 505-269-8317
Vice President,
Corporate Development
mlueras@uraniumresources.com
or
Company:
Uranium
Resources, Inc.
Don Ewigleben, 972-219-3330
President & Chief
Executive Officer