Uranium Resources enters into 1.0m dollar loan agreement

AIM-listed uranium exploration and development company Uranium Resources has entered into a 1.0m dollar loan facility agreement with its major shareholder and strategic investor Estes.

AIM-listed uranium exploration and development company Uranium Resources has entered into a 1.0m dollar loan facility agreement with its major shareholder and strategic investor Estes.

The loan, which is unsecured, available for a period of 18 months and bears interest at LIBOR, will be used to fund working capital requirements, the company said.

Pending publication of its maiden resource at the company's flagship Mtonya uranium project in southern Tanzania, the company said that the loan would provide it with non-dilutionary financing while it awaited these results.

Initially, Uranium Resources said that it intends to draw down up to $200,000.

Alex Gostevskikh, Managing Director of Uranium Resources, said: "Following 26,485m of drilling, we confirmed the lateral extents of significant sandstone-hosted roll-front uranium mineralisation at Mtonya, which appears to be amenable to in-situ recovery.

"The next step in the development for the company is the publication of our maiden JORC-resource at Mtonya which we expect within the next month," he added.

Uranium Resources' share price was down 4.71% to 2.02p at 09:05 on Tuesday.

MF

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022