LONDON (Alliance News) - Uranium Resources PLC said Thursday its major shareholder and strategic investor Estes Ltd has agreed to increase the principal amount of its loan facility to USD440,000.
Uranium said Estes has also agreed to extend the term of the loan facility to June 30. The loan has been fully drawn down, Uranium added.
Estes owns a 55% stake in Uranium and, as such, the increase of the loan amount constitutes a related party transaction.
Uranium's independent directors, being Managing Director Alex Gostevskikh, Non-Executive Director Andrew Lewis, Non-Executive Director James Pratt, and Non-Executive Chairman Mark Purits, consulted with Uranium's nomianated advisor Northland Capital Partners Ltd and found that the revised terms of the loan facility, dated February 19, are "fair and reasonable in so far as the company's shareholders are concerned".
Shares in Uranium closed up 10% at 0.440 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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