LITTLETON, Colo., Aug. 28, 2013 /CNW/ - Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) ("Ur?Energy" or the "Company") is pleased to
announce that the Company, and certain of its U.S. subsidiaries, closed
on a
US$15.0 million
secured loan facility (the "Second Loan Facility") with RMB Australia
Holdings Ltd. ("RMBAH") on August 27, 2013. The Loan Facility is in addition to the previously-announced US$20.0 million facility with RMBAH, closed in June 2013 (the "First Loan Facility"). (See News Release June 25, 2013).
(Logo: http://photos.prnewswire.com/prnh/20110913/LA67628LOGO)
The Second Loan Facility will provide additional working capital for
operations of the Company's flagship Lost Creek Project, which
commenced production operations on August 2, 2013.
Ur-Energy President and CEO Wayne Heili commented, "We are very pleased
to announce the closing of this Second Loan Facility, and for the
continued support of RMB Resources and RMB Australia. RMB has decades
of lending experience in the natural resources industries. We are
fortunate that such a well-respected international banking partner is
demonstrating this commitment to our project and to our company."
The Loan Facility includes the following terms:
-
scheduled repayments of principal commence March 2014 at the rate of
US$750,000 per quarter, increase to US$1,800,000 per quarter in March
2016 following the final repayment of the First Loan Facility, and
continue until the repayment term concludes on March 31, 2017;
-
an interest rate of LIBOR plus 7.5% per annum calculated quarterly;
-
an arrangement fee of 6.0% payable at closing, with 50% to be applied as
a payment under certain circumstances;
-
issuance of 3,100,800 warrants with a five-year expiry, exercisable for
3,100,800 common shares of the Company at an exercise price of C$1.25,
and other terms as set forth in the warrant certificate, of which 50%
are cancellable under certain circumstances. As with the First Loan
Facility, proceeds from the exercise of warrants during the term of the
Second Loan Facility are to be used for payments on the facility;
-
repayment in full upon a closing of the State of Wyoming Industrial
Development Bond Loan, or a payment of US$10,000,000 on or before March
31, 2014 under certain circumstances;
-
customary security and other customary terms as set forth in the Second
Loan Facility transaction documents.
The Company continues to work with the State of Wyoming and Sweetwater
County to advance a US$34.0 million bond loan (the "Bond Loan") through
the State's Industrial Development Bond program. The Second Loan
Facility will be repaid upon a closing of the Bond Loan.
About Ur-Energy
Ur-Energy is a junior uranium mining company operating the Lost Creek
in-situ recovery uranium facility in south-central Wyoming. The Lost
Creek processing facility will have a two million pounds per year
nameplate capacity. Ur-Energy engages in the identification,
acquisition, exploration development, and operation of uranium projects
in the United States and Canada. Shares of Ur-Energy trade on the
Toronto Stock Exchange under the symbol "URE" and on the NYSE MKT under
the symbol "URG". Ur-Energy's corporate office is located in Littleton,
Colorado; its registered office is in Ottawa , Ontario . Ur-Energy's
website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
This release may contain "forward-looking statements" within the meaning
of applicable securities laws regarding events or conditions that may
occur in the future (e.g., timing and ability to complete bond closing or other project financing;
timing of completion of commissioning and ramp-up of operations at Lost
Creek) and are based on current expectations that, while considered
reasonable by management at this time, inherently involve a number of
significant business, economic and competitive risks, uncertainties and
contingencies. Factors that could cause actual results to differ
materially from any forward-looking statements include, but are not
limited to, capital and other costs varying significantly from
estimates; failure to establish estimated resources and reserves; the
grade and recovery of ore which is mined varying from estimates;
production rates, methods and amounts varying from estimates; delays in
obtaining or failures to obtain required governmental, environmental or
other project approvals; inflation; changes in exchange rates;
fluctuations in commodity prices; delays in development and other
factors. Readers should not place undue reliance on forward-looking
statements. The forward-looking statements contained herein are based
on the beliefs, expectations and opinions of management as of the date
hereof and Ur-Energy disclaims any intent or obligation to update them
or revise them to reflect any change in circumstances or in
management's beliefs, expectations or opinions that occur in the
future.
SOURCE: Ur-Energy Inc.
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