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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published