The company will use the funds from the credit facility to develop, operate and maintain its Hobson, Goliad and Palangana projects and for working capital purposes.
Under the credit facility, the company has received initial funding of $10m, with an additional $5m available for draw-down pursuant to a second advance, and an additional $5m available for draw-down pursuant to a third advance.
Uranium Energy president and CEO Amir Adnani said that the new credit facility injects non-dilutive growth capital into the company while aligning its interest with two North American and Asian resource investors in Sprott and CEF Holdings.
"As we look to develop strategic ties in Asia, the fastest growing market for nuclear power, it is important to establish relations with one of the region’s largest conglomerates," Adnani added.
The two-year facility comes with interest at a rate of 8% per annum. The undrawn standby credit facility will be subject to a standby fee of 4% per year.
