Uranium Resources, Inc. (NASDAQ: URRE) (URI), announced today that, on September 5, 2012, it closed the $5 million financing with Resource Capital Fund V L.P. (“RCF”), pursuant to its investment agreement with RCF. URI exercised the $5 million option on August 31, 2012 in conjunction with the closing of its acquisition of Neutron Energy, Inc. RCF purchased 9,691,801 shares of URI common stock at a price of $0.5159 per share. The share price was based on the volume weighted average trading price of URI common stock on the NASDAQ Capital Market for the 20 trading days prior to the closing of the Neutron merger.
“The total investment made by RCF in URI we believe is a confirmation of the value inherent in our uranium assets and production potential in New Mexico as well as the strong outlook on the uranium market in general,” commented Don Ewigleben, President and CEO of URI. “We expect that global demand for nuclear power will continue to expand as emerging economies require measurably greater amounts of electric power and this will more than offset declines in somewhat stagnant developed economies. We believe this demand will drive price as supplies are not able to keep pace and URI will be in a position to capitalize on this environment.”
Mr. Ewigleben continued, “Over the past few years, URI has undertaken many initiatives to position the Company for the long-term. We now have more than 154 million pounds of in-place mineralized uranium material, an underground injection control permit and NRC license to conduct ISR mining at the Churchrock Section 8 area, and we continue to be in meaningful discussions with the Navajo Nation regarding a comprehensive agreement regarding the production of uranium. Once an agreement with the Navajo is reached, we will look to secure the needed capital for the Churchrock project and initiate construction activities. Given interest from various investors and potential strategic partners, we believe we will be able to obtain the required funding for the project.”