NYSE MKT Equities Exchange Symbol - UEC
- Maturity of existing credit facility extended by two years to further strengthen the Company's working capital position and financial flexibility;
- Substantial liquidity injection that is non-dilutive to shareholders through a drawdown of an additional $10M to advance the Company's hub-and-spoke production platform in South Texas;
- Continued support from two of the most respected investors in the natural resource sector; and
- Developments to continue at the Palangana, Goliad and Burke Hollow ISR Projects and increased extraction to come online with a sustained improvement in uranium prices, which is expected in 2014 on the back of reactor restarts in Japan.
CORPUS CHRISTI, TX, March 14, 2014 /PRNewswire/ - Uranium Energy Corp (NYSE MKT: UEC) (the "Company" or "UEC") is pleased to announce that the Company, Sprott Resource Lending Partnership and CEF Capital Markets Limited (the "Lenders") have agreed to extend the previously announced $20,000,000 senior secured credit facility (the "Credit Facility") by deferring required principal payments by two years and extending the Credit Facility by two years to now a full four years (together, the "Credit Facility Extension").
The Company has drawn down a further $10,000,000, bringing the total principal amount outstanding under the Credit Facility Extension to $20,000,000.
Amir Adnani, President and CEO, stated, "The $10 million drawdown combined with the Credit Facility Extension have significantly strengthened UEC's financial position in a manner which is non-dilutive to our shareholders. We will be utilizing this injection of growth capital to continue advancing our Texas hub-and-spoke production platform."CEF's Chairman and CEO, Warren Gilman stated, "Our investment in UEC is based on the uniqueness and quality of their assets as well as the strength of its management team. We are pleased to continue our support of the Company as it positions itself as the leading uranium producer in the U.S." Narinder Nagra, President of Sprott Resource Lending Corp., added, "We anticipate improving conditions in the uranium market driven by the continued growth of nuclear power globally and strong supply-demand fundamentals for uranium over the medium to long-term. We support UEC's goal of becoming an important and strategic producer in the U.S., which despite being the world's largest consumer of nuclear power, is presently heavily dependent on imported uranium supply to fuel its nuclear reactors." Uranium Market and Operations Update The long-term fundamentals for both nuclear power and the uranium price are very strong however this strength is not currently reflected in uranium prices. The current spot price of uranium is below the average economic cost to produce uranium from currently operating mines globally, and is well below the average economic cost to develop new production.