Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), today provided an update on the Company’s activities, its liquidity position for the third quarter of 2012 and its strategy and outlook.
Terence J. Cryan, Interim President and CEO of URI, commented on the search for a permanent CEO, “We are actively searching and considering potential candidates to lead Uranium Resources into the future, but at this time have not yet selected that person. In the meantime, we are making the decisions needed to advance our valuable uranium assets in a prudent manner and consistent with the present market environment.”
Mr. Cryan noted, “The long-term opportunities for uranium remain as robust as ever with demand well outstripping supply in the latter part of the decade and we believe the extensive uranium assets that we hold in New Mexico will be a major part of the needed supply. Nonetheless, the current state has been a challenging market environment for uranium. Uranium prices have been steadily declining since June of this year, and may remain weak through 2013. We do expect that there could be a rapid surge in prices when the clarity of the market imbalance is realized.
“At this time, we are deferring our construction plans for our Churchrock Section 8 project. In addition to reducing our near-term capital requirements, it will enable us to focus on those efforts that will de-risk the project, improve its economics and facilitate future development options.”
The Company’s primary areas of focus are as follows:
Advancements in New Mexico
- Contain costs to minimize the cash burn to only that needed to achieve our priorities
- Complete the feasibility study on Churchrock Section 8
- Continue to advance negotiations with the Navajo Nation and its government regarding access to Section 8, as well as garner a comprehensive understanding of the environmental and safety focus of our production and restoration plans
- Attempt to reach agreements with royalty holders of Section 8, Section 17 and Mancos properties
- Complete groundwater restoration of its Texas properties
- Evaluate opportunities with the joint venture with Cameco in Texas
URI’s primary focus in New Mexico is its Churchrock Section 8 property, which contains 6.5 million pounds of in-place non-reserve mineralized uranium material. Section 8 is in the area covered by the Company’s underground injection control permit and NRC license. Both licenses are in timely renewal and allow for uranium production by in situ recovery. The NRC license addresses in total 27.4 million pounds of in-place, non-reserve, mineralized uranium material for the Company’s Churchrock/Crownpoint Project.