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.

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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.

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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

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