26 Mar 2013 07:00
Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration
26 March 2013
Uranium Resources plc ('Uranium Resources') or ('the Company')
Loan Agreement
Uranium Resources plc, the AIM listed uranium exploration and development company, is pleased to announce that it has entered into a US$1 million loan facility agreement ('the Loan') with its major shareholder and strategic investor Estes Limited ('Estes'). The Loan, which is unsecured, available for a period of 18 months and bears interest at LIBOR, will be used to fund working capital requirements. Pending publication of its maiden resource at the Company's flagship Mtonya uranium project in southern Tanzania, the Loan provides the Company with non-dilutionary financing while the Company awaits these results. Initially, the Company intends to draw down up to $200,000.
URA's Managing Director, Alex Gostevskikh, said, "Following 26,485 metres of drilling, we confirmed the lateral extents of significant sandstone-hosted roll-front uranium mineralisation at Mtonya, which appears to be amenable to in-situ recovery ('ISR'). The next step in the development for the Company is the publication of our maiden JORC resource at Mtonya which we expect within the next month.
"Estes continues to show its support in providing this flexible funding option that avoids dilution whilst we complete this important step in the next phase of our evolution."
As a substantial shareholder, Estes is a related party of the Company and receipt of the Loan constitutes a related party transaction as defined by Rule 13 of the AIM Rules for Companies. The independent directors (being Alex Gostevskikh, Andrew Lewis, James Pratt and Ross Warner), having consulted with RFC Ambrian Limited, the Company's nominated adviser, consider that the terms of the Loan are fair and reasonable in so far as the Company's shareholders are concerned.
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
Alex Gostevskikh | Uranium Resources plc | Tel: +44 (0) 7997 713377 |
Ross Warner | Uranium Resources plc | Tel: +44 (0) 7760 487769 |
Samantha Harrison | RFC Ambrian Limited | Tel: +44 (0) 20 3440 6800 |
Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
About Uranium Resources
Uranium Resources plc is an AIM listed exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunistic acquisition. Uranium Resources is advancing its uranium assets in the highly prospective Luwegu Basin, Southern Tanzania where it is exploring for roll-front deposits amenable to in-situ recovery.