Uranium Resources Plc Regulatory News (URA)

24 Nov 2006 14:22

Uranium Resources PLC24 November 2006 Uranium Resources plc Disclosure statement Uranium Resources plc ("URA" or the "Company") announces that it has notifiedDeep Yellow Limited ("DYL"), an ASX listed Company, and Dr Leon Pretorius (aformer director of URA and a current director of DYL) of certain claims URA hasagainst both DYL and Dr Pretorius concerning the acquisition by DYL of RaptorMinerals Limited ("RML"). URA had sought legal advice in relation to thoseclaims. URA's solicitors have been in communication with the solicitors for DYL and DrPretorius. Commercial discussions between the parties have been held and theparties have failed to reach an agreed resolution. URA notes that DYL issued a supplementary prospectus this morning regardingURA's claims (an extract of which appears below). At this stage, URA has not issued legal proceedings against either DYL or DrPretorius and is currently considering its position. URA maintains that it hasvalid claims against DYL and Dr Pretorius. Further announcements will be made when appropriate. Extract from DYL's supplementary prospectus "2. CLAIM BY URANIUM RESOURCES PLC 2.1 Background As noted in section 6.3 of the Prospectus, certain third parties asserted theexistence of rights over or claims to the assets or interests of Raptor MineralsLimited (RML), or a right to be involved in the agreement for the acquisition ofRML by the Company, on the basis of the involvement of common directors in thosenegotiations over a period of time. As at the date of the Prospectus, the nature of those assertions and the rightsor claims involved was unclear. Subsequently, the relevant third party, UraniumResources Plc (URP), through its solicitors, wrote to DYL providing furtherparticulars in relation to the claims, as detailed below, and seeking variousundertakings. 2.2 Description of Claim URP's claim (Claim) against the Company relates primarily to the involvement ofa director of the Company, Dr Leon Pretorius, who is also a former director ofURP, in negotiations with certain of the RML vendors (or their associates orrepresentatives) over the period from approximately September 2005 to October2006. The Claim contains an allegation that Dr Pretorius breached duties he owedor owes to URP (as a former director of URP) by directing a businessopportunity, namely the acquisition of RML, to DYL for his own benefit and forthe benefit of DYL. The Claim contains an allegation that Dr Pretorius breachedobligations of confidentiality owed to URP. The Claim also contains anallegation that the Company was, at all material times, aware of this (alleged)breach of fiduciary duties and that the Company has received and continues toreceive a benefit as a result of this breach of duties, and is liable to accountto URP for that benefit. DYL has refused to provide the undertakings sought by URP and commercialdiscussions between the parties have failed to reach an agreed resolution of theClaim. 2.4 Current Position Both DYL and Dr Pretorius deny the allegations in the Claim, are of the viewthat the Claim is without merit, and intend to vigorously defend any legalaction which is commenced by URP. However, given that URP has now made specific assertions, and threatened to takelegal action, even if DYL ultimately prevails in such litigation, there is, inthe view of the Directors of DYL, a risk of ongoing uncertainty in relation toDYL and its acquisition of RML, at least until the litigation is finallydetermined or there is a commercial resolution between the parties. In light of the uncertainty created by this situation, the Directors of DYL haveresolved that it is appropriate for shareholders who have applied for sharesunder the Offer to be refunded their application moneys in accordance withsection 724 of the Corporations Act and have the opportunity to re-apply for NewShares having received this Supplementary Prospectus." 24 November 2006 Enquiries Uranium Resources plc Hugh Warner, Director 00 61 8 9217 3350 Nabarro Wells & Co. Limited Hugh Oram, Director 020 7710 7400 This information is provided by RNS The company news service from the London Stock Exchange