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Uranium Resources plc, the AIM-listed uranium exploration and development company in Tanzania, has said that it has entered into a further US$300,000 loan facility agreement with its major shareholder and strategic investor Estes Limited.
The loan, which is unsecured, is available for the period to 1 January 2015 and bears interest at LIBOR, will be used to fund working capital requirements.
The loan is in addition to the US$1 million facility previously entered in to and announced on 26 March 2013. This 2013 facility has been fully drawn down.
URA’s Managing Director, Alex Gostevskikh, said, “As we are finalising the 2014 exploration programme that is targeting to expand the maiden resource of our flagship Mtonya uranium project, we are pleased to have the continued support from Estes.
With a maiden resource based on less than 10% of the prospective ground on the Mtonya illustrating significant upside potential, and proof-of-concept mineralogy studies completed, we believe we have a regional mineralised roll-front feature that can be developed through in-situ recovery, the most cost-effective and environmentally acceptable method of uranium extraction.
These funds will beconservatively used for the Company’s operating and tenure expenditures as we examine strategic options to advance Mtonya.”
As a substantial shareholder, Estes is a related party of the Company and receipt of the Loan constitutes a related party transaction as defined by Rule 13 of the AIM Rules for Companies.
The independent directors (being Alex Gostevskikh, Andrew Lewis, James Pratt and Ross Warner), having consulted with Northland Capital Partners Limited, the Company’s nominated adviser, consider that the terms of the Loan are fair and reasonable in so far as the Company’s shareholders are concerned.
Uranium Resources plc is an AIM listed exploration and development company which is focusing on its Mtonya flagship project which has a maiden inferred resource of 3.6 Mt ore containing 2 Mlb U3O8 grading 255 ppm U3O8. The resource is expected to be amenable to in-situ recovery, the most cost-effective and environmentally acceptable method of uranium extraction.
The Company’s strategy comprises advancing its existing assets and strengthening its portfolio via opportunistic acquisition.
Uranium Resources has uranium licences in the highly prospective Karoo basins in southern Tanzania.
