Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), announced the completion of a stock-for-stock transaction to acquire 100% of the equity of Neutron Energy, Inc. (“Neutron”) pursuant to the Agreement and Plan of Merger dated March 1, 2012 (the “Merger Agreement”) by and among URI, Neutron and URI Merger Corporation.
At the effective time of the merger on August 31, 2012, URI Merger Corporation merged with and into Neutron with Neutron surviving the merger as an indirect wholly-owned subsidiary of URI.
Concurrent with the acquisition, Resource Capital Fund V L.P. (“RCF”) purchased 24,638,673 shares of URI common stock for $20 million, which was used to partially repay a loan owed by Neutron to RMB Australia Holdings Limited (“RMB”). The remainder of Neutron’s debt owed to RMB was converted into 8,361,327 shares of URI common stock, resulting in URI acquiring Neutron on a debt-free basis. In addition, URI issued 162,939 shares of URI common stock to Roth Capital Partners, LLC, Neutron’s financial advisor, to satisfy certain obligations incurred by Neutron in connection with the merger.
Don Ewigleben, President and CEO of URI, commented, “This transaction positions URI as one of the largest uranium development companies based in the U.S. with more than 154 million pounds of in place mineralized uranium material. With this acquisition, we gain operational synergies for the development of our combined in situ and conventional resources in New Mexico, as well as add a previously permitted conventional mill site to our asset base. Consolidating uranium assets in New Mexico is a key strategic objective as we believe this state will once again be a vital source of uranium to fuel both existing and planned nuclear energy facilities globally at a critical point in time as the supply of uranium over the next several years diminishes and demand expands.”