Texas Activities Progressing
Groundwater restoration has been completed and is currently being monitored for stability at Kingsville Dome Production Area (PA)1 and PA2, in addition to Rosita PA1 and PA2. Final closure of these production areas is targeted for mid- to late-2013. The Company continues restoration activities with stabilization targeted for the third quarter of 2013 at Kingsville Dome PA3 and fourth quarter of 2013 for Vasquez PA1 and PA2.
Phase II of the joint Los Finados exploration project with Cameco started in December 2011. Drilling activities concluded in August and both parties have agreed to delay a decision to proceed with Phase III until December 31, 2012. Under Phase II, 40 holes were drilled at an average depth of 1,327 feet and, while there have been no significant findings, the geologic opportunities in the area are still encouraging. Cameco currently has earned a 50% interest in the project and can earn a 70% interest with the completion of Phase III.
URI is in the process of refurbishing the Kingsville Dome holding ponds and expects this project to complete in mid-2013.Liquidity Position Cash at September 30, 2012 was $4.0 million compared with $2.9 million at December 31, 2011 and reflects the $5 million option with Resource Capital Fund V L.P. that closed on September 5, 2012 through the sale of 9,691,801 shares of URI common stock at a price of $0.5159 per share. As of October 31, 2012, URI had $3.0 million in cash. During the third quarter, the Company sold 5.6 million shares of common stock, raising net proceeds of $2.9 million under the existing At-The-Market Sales Agreement (“ATM”) with BTIG, LLC. In October 2012, the Company sold an additional 2.2 million shares under the ATM program, raising net proceeds of $937,000. At October 31, 2012, URI has a total of $9.0 million in share value available for future sales under the ATM.