Uranium Resources, a uranium exploration and development company, announced today it has executed a Purchase Agreement with Aspire Capital Fund to place up to $12m in stock with Aspire Capital over a term of 30 months.
The Purchase Agreement with Aspire Capital was executed on Friday, April 8, 2016.
Christopher M. Jones, President and Chief Executive Officer, said "With the execution of this Purchase Agreement, and upon shareholder approval, we will be able to access the capital necessary to fund our work, most importantly those activities directed at bringing the Temrezli Project to a final investment decision."
"Despite an extremely challenging commodity and capital markets environment, we have been able to make important progress to execute the strategy we defined three years ago – that is, to advance the development of low cost, near term production.
We are excited about the future of this Company as we continue to reduce our costs and bring production nearer in time. We believe that the development of this low-cost ISR project will drive significant future value for our shareholders."
Key terms under the common stock Purchase Agreement include:
Uranium Resources will control the timing and amount of any sales to Aspire Capital, and at a price based on the market at that time;
Aspire Capital has no right to require any sales by Uranium Resources but is obligated to make purchases when the Company desires to sell shares of its common stock to Aspire Capital, in accordance with the terms of the Purchase Agreement;
Aspire Capital has agreed that neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company’s common stock during any time prior to the termination of the Purchase Agreement;
There are no limitations on the use of proceeds, financial covenants or restrictions on future financings and there are no rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement; and
The purchase agreement may be terminated by Uranium Resources at any time, at its discretion, without any additional cost or penalty.
A complete and detailed description of the Purchase Agreement and related registration rights agreement will be set forth in the Company’s Current Report on Form 8-K filed on Friday, April 8, 2016 with the SEC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
URI is focused on advancing the Temrezli in-situ recovery (ISR) project in central Turkey. URI also controls extensive exploration properties under nine exploration and operating licenses covering approximately 32,000 acres (over 13,000 ha) with numerous exploration targets, including the potential satellite Sefaatli project, which is 30 miles (48 km) southwest of the Temrezli project.
In Texas, the Company has two licensed and currently idled processing facilities and approximately 14,000 acres (5,700 ha) of prospective ISR projects. In New Mexico the Company controls minerals rights encompassing approximately 190,000 acres (76,900 ha) in the prolific Grants Mineral Belt, which is one of the largest concentrations of sandstone-hosted uranium deposits in the world.
Incorporated in 1977, URI also owns an extensive uranium information database of historic drill hole logs, assay certificates, maps and technical reports for the Western United States.