LONDON (Alliance News) - Uranium Resources PLC Friday said its looking for a merger, partnership or to create a joint venture in order to get funding allowing it continue exploration next year, as it reported a narrowed loss for its last financial year.
The AIM-listed uranium exploration and development company, with operations in Tanzania, said its pretax loss narrowed to USD1.1 million for the twelve months ended June 30 from USD2.1 million the previous year. However, the majority of the company's losses in 2012 came from a USD1.7 million share-based payment expense, which skewed the comparable figures.
The company lowered its administrative expenses during the year to USD687,000, from USD788,000 the previous year, but booked a USD327,000 impairment charge, as the company decided to allow a number of unprospective licences to lapse after a strategic review.
Uranium Resources said that it has now advanced its predictive discovery at the Mtonya Uranium project to a resource stage but that its ability to fund further exploration has been affected by adverse uranium market conditions.
The company said it expects these funding difficulties to be overcome in 2014 and that in order to finance the 2014 programme, it is reviewing a number of strategic alternatives including, but not limited to, joint ventures, strategic partnerships, and mergers or other corporate transactions to enhance shareholder value.
Uranium Resources shares were down 14.3% to1.05 pence, putting it in the top five AIM losers Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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