Uranium Resources Announces Results of Rights Offering
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.
Uranium Resources routinely posts news and other information about the
Company on its website at www.uraniumresources.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as 'expects,? 'estimates,? 'projects,?
'anticipates,? 'believes,? 'could,? and other similar words. All
statements addressing operating performance, events, or developments
that the Company expects or anticipates will occur in the future,
including but not limited to statements relating to the estimated
proceeds and anticipated use of proceeds from the Company′s rights
offering, the level of participation in the rights offering and the
anticipated delivery date of shares purchased in the rights offering.
Because they are forward-looking, they should be evaluated in light of
important risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, the finalization of
receipt of funds, the success of the current rights offering to raise
additional capital and our ability to raise additional capital in the
future, spot price and long-term contract price of uranium, the outcome
of negotiations with the Navajo Nation, the Company′s ability to reach
agreements with current royalty holders, weather conditions, operating
conditions at the Company′s mining projects, government and tribal
regulation of the mining industry and the nuclear power industry,
world-wide uranium supply and demand, availability of capital, timely
receipt of mining and other permits from regulatory agents, maintaining
sufficient financial assurance in the form of sufficiently
collateralized surety instruments and other factors which are more fully
described in the Company′s documents filed with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should any of the Company′s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on the
Company′s forward-looking statements. Except as required by law, the
Company disclaims any obligation to update or publicly announce any
revisions to any of the forward-looking statements contained in this
news release.
Investor:
Kei Advisors LLC
Deborah K. Pawlowski,
716-843-3908
dpawlowski@keiadvisors.com
or
Media:
Uranium
Resources, Inc.
Mat Lueras, 505-269-8317
Vice President,
Corporate Development
mlueras@uraniumresources.com
