Uranium Resources, Inc. (NASDAQ:URRE; ASX: URI), a leading
exploration, development, and uranium production company, announced that
today it has entered into a stock purchase agreement with Aspire Capital
Fund, LLC, selling 3,560,000 shares of its common stock in a registered
direct offering for an aggregate purchase price of US $838,000.00. There
were no underwriting discounts or placement agent fees. The Company
intends to use the net proceeds from this transaction for general
corporate purposes, which may include technical studies, restoration
commitments, capital expenditures and working capital.
Separately, on February 3, 2016, the Company and Aspire Capital also
entered into an option agreement by which Aspire Capital granted the
Company the right at any time or times prior to April 30, 2017, for the
Company to require Aspire Capital to enter into up to two common stock
purchase agreements, each having a term of up to 24 months, and
collectively requiring Aspire Capital to purchase up to the aggregate
amounts of which shall not exceed $10 million in the aggregate of
Company’s common stock (or such lesser amount as the Company may
determine) on an ongoing basis when required by the Company. Upon the
execution of the option agreement, the Company issued 900,000 restricted
common shares to Aspire Capital as a commitment fee.
The securities in the registered direct offering are being offered by
the Company pursuant to a shelf registration statement (File No.
333-196880), which was declared effective by the U.S. Securities and
Exchange Commission (the “SEC”) on June 30, 2014. A prospectus
supplement and accompanying base prospectus relating to the offering
will be filed with the SEC. Copies of the prospectus and prospectus
supplement relating to the offering may be obtained at the SEC’s
website, http://www.sec.gov.
This news release does not and shall not constitute an offer to sell or
the solicitation of an offer to buy any securities, nor shall it
constitute an offer, solicitation or sale in any jurisdiction in which,
or to any person to whom, such offer, solicitation or sale is unlawful.
Details of the stock purchase agreement and option agreement were filed
with the SEC on Form 8-K earlier today.
About Uranium Resources
Uranium Resources, Inc. (URI) is focused on advancing to near-term
production the Temrezli in-situ recovery (ISR) project in Central
Turkey. URI also controls extensive exploration properties under nine
exploration and operating licenses covering approximately 32,000 acres
(over 13,000 ha) with numerous exploration targets, including the
potential satellite Sefaatli Project, which is 30 miles (48 km)
southwest of the Temrezli Project. In Texas, the Company has two
licensed and currently idled processing facilities and approximately
14,000 acres (5,700 ha) of prospective ISR projects. In New Mexico, the
Company controls minerals rights encompassing approximately 190,000
acres (76,900 ha) in the prolific Grants Mineral Belt, which is one of
the largest concentrations of sandstone-hosted uranium deposits in the
world. Incorporated in 1977, URI also owns an extensive uranium
information database of historic drill hole logs, assay certificates,
maps and technical reports for the Western United States.
About Aspire Capital Fund, LLC
Aspire Capital is a Chicago based institutional investor that takes a
fundamental investment approach and invests in a wide range of companies
and industries emphasizing life sciences, energy and technology.
Cautionary Statement
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as "expects," "estimates," "projects,"
"anticipates," "believes," "could," and other similar words. All
statements addressing operating performance, events or developments that
the Company expects or anticipates will occur in the future, including
but not limited to statements relating to the proposed common stock
purchase agreements under the Option Agreement, the closing of the
registered direct offering and use of the proceeds from the registered
direct offering are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important risk
factors and uncertainties. These risk factors and uncertainties include,
but are not limited to, (a) the Company's ability to raise additional
capital in the future; (b) spot price and long-term contract price of
uranium; (c) risks associated with our foreign operations, (d) the
Company's ability to reach agreements with current royalty holders; (e)
operating conditions at the Company's projects; (f) government and
tribal regulation of the uranium industry and the nuclear power
industry; (g) world-wide uranium supply and demand; (h) maintaining
sufficient financial assurance in the form of sufficiently
collateralized surety instruments; (i) unanticipated geological,
processing, regulatory and legal or other problems the Company may
encounter, including in Turkey; (j) the ability of the Company to enter
into and successfully close acquisitions or other material transactions,
including the proposed transaction with Laramide, and other factors
which are more fully described in the Company's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, and other filings with the
Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should any of the Company's underlying
assumptions prove incorrect, actual results may vary materially from
those currently anticipated. In addition, undue reliance should not be
placed on the Company's forward-looking statements. Except as required
by law, the Company disclaims any obligation to update or publicly
announce any revisions to any of the forward-looking statements
contained in this news release.
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