12 Jan 2017 16:18
Uranium Resources plc
("Uranium Resources" or "the Company")
Share Price Movement and Estes Loans
Uranium Resources notes the recent rise in the Company's share price. The Company continues to rely on the financial support of its major shareholder Estes Limited ("Estes") and provides the following update on the loan arrangements with Estes.
Estes has agreed to extend the terms of its loan facilities dated 15 March 2013, 18 March 2014 and 19 February 2015 to 15 March 2017. These loan facilities total US$1.8 million and are fully drawn down.
The Company is also pleased to announce that Estes has agreed to provide a further unsecured term loan facility of US$50,000. This facility is for working capital purposes, is available until 15 March 2017 and bears interest at LIBOR.
The Company continues to investigate options for the development of its Mtonya project in Tanzania.
As a substantial shareholder, Estes is a related party of the Company and the revised loan terms above plus the new loan facility constitute related party transactions as defined by Rule 13 of the AIM Rules for Companies. The independent directors, being Alex Gostevskikh, Andrew Lewis, James Pratt, and Mark Purits, having consulted with Northland Capital Partners Limited, the Company's nominated adviser, consider that the revised terms of the loan facilities and the new loan are fair and reasonable in so far as the Company's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
Alex Gostevskikh | Uranium Resources plc | Tel: +1 778 938-7631 |
Matthew Johnson / David Hignell | Northland Capital Partners Ltd | Tel: +44 (0)203 861 6625 |