This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Uranium Resources, Inc. (NASDAQ: URRE) (URI) announced today the preliminary results of its non-transferable rights offering, which expired at 5:00pm ET on February 27, 2013. The Company estimates it will receive gross proceeds of approximately $8.7 million, before expenses, from the shareholder rights offering, which is to be used to satisfy a $5.0 million bridge loan and for general working capital.
The rights offering is expected to result in the issuance of 3.4 million additional shares of URI common stock, which would represent approximately 67% of the maximum number of common shares available under the rights offering. The results are based upon the subscription for shares received, and remain subject to receipt of final subscription agreements for such shares in accordance with the terms and conditions of the rights offering.
As part of the rights offering, Resource Capital Fund V L.P. (“RCF”) exercised rights to purchase approximately 1.9 million shares of URI common stock pursuant to the previously-announced standby purchase agreement between URI and RCF. RCF will satisfy its $5.0 million subscription by offsetting the purchase against $5.0 million in borrowings owed to it by URI under a bridge loan agreement. Excluding such amount, the Company estimates that it will receive net proceeds from the rights offering of approximately $3.7 million.
URI expects that the rights offering will close on March 5, 2013 to accommodate those who exercised their rights using guaranteed delivery procedures. The Company intends to mail new common shares acquired through the rights offering to registered subscribers within 3 business days of the scheduled closing of the offering. Shareholders participating in the over-subscription privilege will be notified individually as to their proportionate allocation of over-subscription shares after the results have been determined.
This news release does not constitute an offer of any securities for sale or a solicitation of an offer to buy any securities.About Uranium Resources, Inc.
Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 8 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas. URI has over 206,600 acres of uranium mineral holdings and 152.9 million pounds of in-place mineralized uranium material in New Mexico and an NRC license to produce up to 1 million pounds of uranium per year. URI has an additional 1.3 million pounds of in-place mineralized uranium material in Texas and South Dakota. The Company acquired these properties over the past 20 years along with an extensive information database of historic drill hole logs, assay certificates, maps and technical reports.