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.
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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.
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