LITTLETON, Colo., Aug. 6, 2019 /CNW/ -- Ur-Energy Inc. (NYSE
American:URG)(TSX:URE) (the
"Company" or "Ur-Energy") announces it has
implemented an additional reduction in force, primarily affecting
employees at its Lost Creek facility.
On July 12, 2019, the President
responded to our Section 232 Trade Action with a Memorandum
establishing the United States Nuclear Fuel Working Group (the
"Working Group") to develop recommendations for reviving and
expanding domestic uranium production. The Memorandum did not,
however, offer any current relief in response to the Trade Action,
such as the domestic quotas suggested by our Petition. As a result
of the White House decision to not take action at this time, we
were compelled to respond and initiate significant cost-saving
measures which, unfortunately, included a reduction in force
affecting ten of our Wyoming
employees. Other, additional, measures will be taken to streamline
our expenditures even further while we await the outcome of the
Working Group's efforts and pursue other avenues of relief.
Ur-Energy Chairman and CEO, Jeff
Klenda, said, "We are determined to succeed in our work
alongside the Trump Administration and with our customers to find
solutions to correct this dysfunctional uranium market, and we
remain optimistic that a positive outcome will be reached through
these efforts. We must, however, at the same time take aggressive
proactive measures to further control costs. We are taking these
measures to maximize the amount of time, or 'runway,' available to
the Company to avoid dilution of our shareholders or other needs
for financing. During this time, we will avail ourselves of any and
all remedies to ensure the continued viability of our Company.
Sadly, these measures include the difficult decision to lay off ten
of our Wyoming staff."
Several remaining employees have been asked to change job
responsibilities and/or carry additional duties. The affected
employees have been offered severance arrangements in order to
assist with their transition to other employment opportunities.
Implementation of the adjustments necessitated by the
reorganization has begun and will be complete in coming weeks. The
nominal operational modifications required at Lost Creek will be
overseen closely to assure continued safe and compliant operations.
Together with other measures slated to be implemented, including
lower production rates and no development activities, these
measures represent an expected annual savings of approximately
$4 million, beginning in
2020.
We provided further guidance for 2019 in our Form 10-Q and
Earnings Release, August 2, 2019,
confirming that production estimates for Lost Creek have been
lowered to between 50,000 and 75,000 pounds
U3O8 during 2019. We can no longer justify
the added cost of maintaining full operational readiness as it
relates to labor, and have accordingly reduced staffing to the
minimum levels necessary to maintain operations. We have retained
core operational personnel who possess the critical knowledge
necessary for the Company to ramp up when conditions warrant. This
enables the Company to preserve our ability to react swiftly and
efficiently to changing market conditions when incentivized, while
simultaneously minimizing the need for additional funding during
this continuing period of uncertainty.
About Ur-Energy
Ur-Energy is a uranium mining company
operating the Lost Creek in-situ recovery uranium facility
in south-central Wyoming. We have
produced, packaged and shipped approximately 2.5 million pounds
from Lost Creek since the commencement of operations. Applications
are under review by various agencies to incorporate our LC East
project area into the Lost Creek permits, and to construct and
operate at our Shirley Basin Project. Ur-Energy is engaged in
uranium mining, recovery and processing activities, including the
acquisition, exploration, development and operation of uranium
mineral properties in the United States. Shares of Ur-Energy
trade on NYSE American under the symbol "URG" and on the Toronto
Stock Exchange under the symbol "URE." Ur-Energy's corporate office
is in Littleton, Colorado; its
registered office is in Ottawa,
Ontario. Ur‑Energy's website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda, Chair and CEO
+1 720.981.4588
Jeff.Klenda@Ur-Energy.com
Cautionary Note Regarding Forward-Looking
Information
This release may contain "forward-looking
statements" within the meaning of applicable securities laws
regarding events or conditions that may occur in the future (e.g.,
continuing results of Lost Creek operations; the impact of the
President's announcement to not take any action to adjust trade to
preserve the domestic uranium mining industry; what recommendations
will be made by the Working Group for the revival and expansion of
domestic nuclear fuel production and the impact of those
recommendations, if any; what relief the Company is successful in
obtaining through other means; whether the cost-savings measures to
be taken will be sufficient and will permit the Company to avoid
dilution to shareholders or other additional financing needs; and
the ability and timing to ramp up when market conditions warrant)
and are based on current expectations that, while considered
reasonable by management at this time, inherently involve a number
of significant business, economic and competitive risks,
uncertainties and contingencies. Factors that could cause actual
results to differ materially from any forward-looking statements
include, but are not limited to, fluctuations in commodity prices;
capital and other costs varying significantly from estimates;
failure to establish estimated resources and reserves; the grade
and recovery of uranium which is mined varying from estimates;
production rates, methods and amounts varying from estimates;
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals; inflation; delays in
development and other factors described in the public filings made
by the Company at www.sedar.com and www.sec.gov. Readers
should not place undue reliance on forward-looking statements. The
forward-looking statements contained herein are based on the
beliefs, expectations and opinions of management as of the date
hereof and Ur-Energy disclaims any intent or obligation to update
them or revise them to reflect any change in circumstances or in
management's beliefs, expectations or opinions that occur in the
future.
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SOURCE Ur-Energy Inc.