| | Published : November 08th, 2010 | Provides Third Quarter 2010 Update |
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Uranium Resources, Inc.
Provides Third Quarter 2010 Update
LEWISVILLE, TX, November 8, 2010 ---
Uranium Resources, Inc. (NASDAQ: URRE) (URI), today provided an update on
the Company�s activities and announced its financial results for the third
quarter of 2010, which ended September 30, 2010.
Recent Highlights
Letter of Intent Signed with Industry Leader. On November 4, 2010, URI announced the signing of a non-binding
letter of intent with Cameco Resources, a subsidiary of Cameco (NYSE: CCJ), for
a large ranch in South Texas. The agreement, which is contingent on URI
successfully completing a lease agreement with the land owners, outlines a
three-phase exploration program that would be funded by Cameco. There is
an option for a production joint venture.
Liquidity Position Further Strengthened. On November 5, 2010, URI successfully completed the second draw
down under its existing shelf registration statement when it closed its
underwritten registered offering of 8,222,500 shares of common stock at a price
of $1.16 per share, including the exercise by the underwriter of an
over-allotment option, with net proceeds to URI of approximately $9.0
million. The Company plans to use the proceeds for general corporate
purposes and to fund future potential acquisitions.
URI Settles Lease Agreement in Texas. On September 29, 2010, URI settled a two-year old lawsuit
regarding a lease agreement in Texas; and as a result, eliminated costly legal
fees while enabling discussions on additional properties with an estimated
250,000 pounds of in place mineralized uranium material.
Tenth Circuit Court Ruling Stands. No petitions were filed by the
deadline to review the June 2010 United States Court
of Appeals for the 10th Circuit en banc ruling that URI�s Section 8 property in
Churchrock, New Mexico is not Indian Country, thus affirming the authority of
the State of New Mexico to issue the underground injection control
permit, which was granted to URI in 1989.
Documents Submitted to NRC to Activate License. In October, URI submitted the necessary documents to the U.S.
Nuclear Regulatory Commission to activate its NRC License. URI is
currently awaiting a determination from the Commission, and once active, the
license may be utilized according to its present terms and conditions while
pending renewal from the NRC.
Opponents petitioned the United States Supreme Court for review of the
March 2010, 10th Circuit Court of Appeals� ruling that upheld the Company�s NRC
license to conduct in-situ recovery (ISR) uranium mining at the
Churchrock/Crown Point project. The Supreme Court has not yet acted on
the petition which does not impede the Company�s progress.
Section 13 Drilling Completed. URI completed drilling on its Section 13 property in
Ambrosia Lake in September. Core samples were shipped to an outside
laboratory for the purpose of determining the suitability of the property for
ISR mining. Results are expected to be completed in December 2010.
If the property is not ISR amenable, then it will fall into the Company�s
conventional mining portfolio. URI has approximately 2.4 million pounds
of in-place, mineralized uranium material in the Ambrosia Lake district.
NASDAQ Listing. URI regained compliance with the $1.00 per share minimum bid price
requirement for continued listing on the NASDAQ Capital Market on October 7,
2010.
Don Ewigleben, President and CEO of
Uranium Resources, noted, �The first nine months of 2010 have been a dynamic
and rewarding time for the Company. We have made measurable progress on
all fronts, as we have continued to deliver on our strategic initiatives.
Last week, we completed the sale of 8,222,500 shares of common stock which provided
net proceeds of approximately $9.0 million. As a result, we have further
strengthened our balance sheet with the requisite capital to fund our growth
strategy.�
Mr. Ewigleben commented on recent
milestones and developments, �Our recent letter of intent with Cameco Resources
has significantly enhanced our Texas opportunities; and coupled with the
settlement of the litigation regarding a lease agreement, we are optimally
positioned to move forward on our Texas strategy. In New Mexico, we are also
making substantial progress as we completed drilling activity on our Ambrosia
Lake property and await results by the end of the year. Moreover, no
petitions were filed by the deadline to review the June 2010, United States
Court of Appeals for the 10th Circuit ruling that URI�s New Mexico property is
not Indian Country, thus affirming the authority of the State of New Mexico to
issue the underground injection control permit.�
Mr. Ewigleben concluded, �Our
30-plus years in uranium exploration, development, and mining operations, our
experience as the only uranium company with approved restoration of an ISR
mining operation in the United States and our significant asset base provides
us a significant advantage in the uranium industry. Strategically, we continue
to advance our properties toward production as we identify new projects and
opportunities to grow our asset base, and, importantly, as we establish
relationships and develop opportunities to continually grow value.�
Liquidity Discussion
Cash at September 30, 2010 was $10.5
million compared with $11.4 million at the end of the trailing second quarter
and $6.1 million at the end of 2009. The significant increase from the
prior year end reflected the Company�s common stock offering in June 2010 and the
over-allotment option that was exercised in July. Subsequent to the end
of the third quarter, URI completed another common stock offering, including an
over-allotment, which resulted in net proceeds of $9.0 million. The cash
balance as of the close of the offering on November 5, 2010 was $18.8 million.
As previously mentioned, on
September 29, 2010, URI settled a Texas land lease dispute and agreed to pay
the plaintiffs $1.38 million in cash, which includes
amounts for prior royalties that the plaintiffs had previously rejected.
The payment of this settlement is subject to execution of amendments to the
leases and to documentation of other aspects of the settlement and dismissal of
the suit and is expected to be made prior to year end 2010.
The Company used $1.9 million in
cash in operating activities during the third quarter of 2010 compared with
$1.3 million and $2.0 million used in operations in the second quarter and
first quarter of 2010, respectively. For the nine-month period of 2010,
URI used $5.2 million in operations compared with $3.3 million used in
operations during the corresponding period of 2009.
Teleconference and Webcast
The Company is hosting a conference call and webcast today at 1:30 p.m.
ET. During the call, Don Ewigleben, President and Chief Executive
Officer, will review financial results for the quarter, provide an update on
URI�s strategies and outlook, and discuss the recent stock offering. A
question-and-answer session will follow.
The URI conference call can be
accessed by dialing (201) 689-8562 and entering conference ID number
359643. The live listen-only audio webcast can be monitored on the
Company�s Web site at www.uraniumresources.com, where it will be archived
afterwards. To
listen to the archived call, dial
(858) 384-5517, and enter conference ID number 359643. The
replay will be available from 4:30 p.m. ET the day of the teleconference until 11:59 p.m. ET Monday, November 15,
2010.
A transcript will also be placed on the Company�s Web site, once
available.
About Uranium Resources, Inc.
Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced over 8 million pounds of uranium by
in-situ recovery (ISR) methods in the state of Texas where the Company
currently has ISR mining projects. URI also has 183,000 acres of uranium
mineral holdings and 101.4 million pounds of in-place mineralized uranium
material in New Mexico and a NRC license to produce up to 1 million pounds of
uranium per year. The Company acquired these properties over the past 20
years along with an extensive information database of historic mining logs and
analysis. None of URI�s properties are currently in production.
URI�s strategy is to fully exploit
its resource base in New Mexico and Texas, expand its asset base both within
and outside of New Mexico and Texas, partner with larger mining companies that
have undeveloped uranium or with junior mining companies that do not have the
mining experience of URI, as well as provide restoration expertise to those
that require the capability or lack the proficiency.
Uranium Resources routinely posts
news and other information about the Company on its web site at
www.uraniumresources.com.
Safe Harbor Statement
This press 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 Company�s mineralized uranium materials,
timing of receipt of mining permits, production capacity of mining operations
planned for properties in South Texas and New Mexico, planned dates for
commencement of production at such properties, revenue, cash generation and
profits 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, the spot price
and long-term contract price of uranium, weather conditions, operating
conditions at the Company�s mining projects, government regulation of the
mining industry and the nuclear power industry, world-wide uranium supply and
demand, availability of capital, timely receipt of mining and other permits
from regulatory agents and other factors which are more fully described in the
Company�s documents filed 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 press release.
TABLES FOLLOW.
URANIUM RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
September 30,
2010
|
|
December 31,
2009
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
10,505,189
|
|
$
|
6,092,068
|
|
Receivables,
net
|
|
4,602
|
|
63,890
|
|
Prepaid and other current assets
|
|
283,277
|
|
125,400
|
|
Total
current assets
|
|
10,793,068
|
|
6,281,358
|
|
|
|
|
|
|
|
Property, plant and equipment, at cost:
|
|
|
|
|
|
Uranium
properties
|
|
81,722,252
|
|
82,212,719
|
|
Other property, plant and equipment
|
|
948,687
|
|
886,992
|
|
Less-accumulated depreciation, depletion and
impairment
|
|
(64,106,430
|
)
|
(64,155,311
|
)
|
Net property, plant and equipment
|
|
18,564,509
|
|
18,944,400
|
|
|
|
|
|
|
|
Long-term
investment:
|
|
|
|
|
|
Certificates
of deposit, restricted
|
|
6,827,795
|
|
6,786,000
|
|
|
|
$
|
36,185,372
|
|
$
|
32,011,758
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts and short term notes payable
|
|
$
|
566,226
|
|
$
|
641,727
|
|
Current portion of restoration reserve
|
|
1,251,984
|
|
1,236,588
|
|
Royalties
and commissions payable
|
|
665,745
|
|
693,303
|
|
Deferred
compensation
|
|
697,028
|
|
�
|
|
Accrued
legal settlement
|
|
1,375,000
|
|
�
|
|
Accrued interest and other accrued
liabilities
|
|
398,485
|
|
321,235
|
|
Current portion of capital leases
|
|
90,740
|
|
112,559
|
|
Total
current liabilities
|
|
5,045,208
|
|
3,005,412
|
|
|
|
|
|
|
|
Other long-term liabilities and deferred
credits
|
|
4,423,625
|
|
5,487,389
|
|
|
|
|
|
|
|
Long term capital leases, less current
portion
|
|
139,322
|
|
207,922
|
|
Long-term debt, less current portion
|
|
450,000
|
|
450,000
|
|
Commitments and contingencies (Notes 5 and
12)
|
|
|
|
|
|
Shareholders�
equity:
|
|
|
|
|
|
Common stock, $.001 par value, shares
authorized: 200,000,000; shares issued and outstanding
(net of treasury shares): 2010�84,264,256; 2009�56,781,792
|
|
84,265
|
|
56,820
|
|
Paid-in
capital
|
|
158,809,128
|
|
147,837,204
|
|
Accumulated
deficit
|
|
(132,756,758
|
)
|
(125,023,571
|
)
|
Less: Treasury stock (38,125 shares), at cost
|
|
(9,418
|
)
|
(9,418
|
)
|
Total
shareholders� equity
|
|
26,127,217
|
|
22,861,035
|
|
|
|
$
|
36,185,372
|
|
$
|
32,011,758
|
|
URANIUM RESOURCES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three Months Ended
September 30,
|
|
Nine months Ended
September 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Uranium
sales
|
|
$
|
�
|
|
$
|
1,406,782
|
|
$
|
�
|
|
$
|
4,616,145
|
|
Total
revenue
|
|
�
|
|
1,406,782
|
|
�
|
|
4,616,145
|
|
Costs
and expenses:
|
|
|
|
|
|
|
|
|
|
Cost
of uranium sales
|
|
|
|
|
|
|
|
|
|
Royalties
and commissions
|
|
�
|
|
143,319
|
|
�
|
|
448,971
|
|
Operating
expenses
|
|
67,260
|
|
886,313
|
|
297,570
|
|
2,519,015
|
|
Accretion/amortization of restoration reserve
|
|
39,143
|
|
(3,818)
|
|
116,431
|
|
254,390
|
|
Depreciation
and depletion
|
|
186,603
|
|
474,207
|
|
576,449
|
|
887,470
|
|
Impairment
of uranium properties
|
|
352,631
|
|
400,231
|
|
742,278
|
|
1,815,220
|
|
Exploration
expenses
|
|
�
|
|
34,929
|
|
725
|
|
39,752
|
|
Total cost of uranium sales
|
|
645,637
|
|
1,935,181
|
|
1,733,453
|
|
5,964,818
|
|
Loss from operations before corporate
expenses
|
|
(645,637
|
)
|
(528,399
|
)
|
(1,733,453
|
)
|
(1,348,673
|
)
|
|
|
|
|
|
|
|
|
|
|
Corporate
expenses
|
|
|
|
|
|
|
|
|
|
General
and administrative
|
|
1,674,030
|
|
1,989,331
|
|
4,852,642
|
|
5,009,593
|
|
Provision for legal settlement
|
|
1,375,000
|
|
�
|
|
1,375,000
|
|
�
|
|
Depreciation
|
|
36,331
|
|
35,792
|
|
107,581
|
|
107,680
|
|
Total
corporate expenses
|
|
3,085,361
|
|
2,025,123
|
|
6,335,223
|
|
5,117,273
|
|
Loss
from operations
|
|
(3,730,998
|
)
|
(2,553,522
|
)
|
(8,068,676
|
)
|
(6,465,946
|
)
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(7,597
|
)
|
(10,119
|
)
|
(18,430
|
)
|
(31,722
|
)
|
Interest and other income, net
|
|
74,114
|
|
39,053
|
|
353,919
|
|
153,508
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(3,664,481
|
)
|
$
|
(2,524,588
|
)
|
$
|
(7,733,187
|
)
|
$
|
(6,344,160
|
)
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04
|
)
|
$
|
(0.04
|
)
|
$
|
(0.12
|
)
|
$
|
(0.11
|
)
|
Diluted
|
|
$
|
(0.04
|
)
|
$
|
(0.04
|
)
|
$
|
(0.12
|
)
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares and common
equivalent shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
83,720,754
|
|
56,453,076
|
|
66,558,635
|
|
56,267,755
|
|
Diluted
|
|
83,720,754
|
|
56,453,076
|
|
66,558,635
|
|
56,267,755
|
|
URANIUM RESOURCES,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine months Ended
September 30,
|
|
|
|
2010
|
|
2009
|
|
Net
loss
|
|
$
|
(7,733,187
|
)
|
$
|
(6,344,160
|
)
|
Reconciliation of net loss to cash used in
operations�
|
|
|
|
|
|
Accretion/amortization of restoration reserve
|
|
116,431
|
|
254,390
|
|
Depreciation
and depletion
|
|
684,030
|
|
995,150
|
|
Impairment
of uranium properties
|
|
742,278
|
|
1,815,220
|
|
Decrease in restoration and reclamation
accrual
|
|
(1,072,148
|
)
|
(1,487,541
|
)
|
Stock
compensation expense
|
|
795,743
|
|
960,811
|
|
Other non-cash items, net
|
|
14,858
|
|
2,132
|
|
|
|
|
|
|
|
Effect of changes in operating working
capital items�
|
|
|
|
|
|
Increase
(decrease) in receivables
|
|
59,288
|
|
(323,878)
|
|
Decrease
in inventories
|
|
�
|
|
1,010,845
|
|
(Increase) decrease in prepaid and other
current assets
|
|
(157,877
|
)
|
299,355
|
|
Increase (decrease) in payables, accrued
liabilities and deferred credits
|
|
1,349,191
|
|
(439,413
|
)
|
Net cash used in operating activities
|
|
(5,201,393
|
)
|
(3,257,089
|
)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Increase in certificates of deposit,
restricted
|
|
(41,795
|
)
|
(120,826
|
)
|
Additions to property, plant and equipment�
|
|
|
|
|
|
Kingsville
Dome
|
|
(143,324
|
)
|
(109,524
|
)
|
Vasquez
|
|
(7,500
|
)
|
(99,578
|
)
|
Rosita
|
|
(63,852
|
)
|
(31,759
|
)
|
Churchrock
|
|
(125,543
|
)
|
(107,626
|
)
|
Section
13 Drilling
|
|
(89,882
|
)
|
�
|
|
Other
property
|
|
(26,797
|
)
|
(38,482
|
)
|
Net cash used in investing activities
|
|
(498,693
|
)
|
(507,795
|
)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Issuance of common stock, net
|
|
10,203,626
|
|
�
|
|
Payments
on borrowings
|
|
(90,419
|
)
|
(122,478
|
)
|
Net cash provided by (used in) financing
activities
|
|
10,113,207
|
|
(122,478
|
)
|
Net increase (decrease) in cash and cash
equivalents
|
|
4,413,121
|
|
(3,887,362
|
)
|
Cash and cash equivalents, beginning of
period
|
|
6,092,068
|
|
12,041,592
|
|
Cash and cash equivalents, end of period
|
|
$
|
10,505,189
|
|
$
|
8,154,230
|
|
|
Uranium Resources Inc.
|
|
PRODUCER |
CODE : URRE |
ISIN : US9169016063 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Uranium Res. is a uranium producing company based in United states of america. Uranium Res. holds various exploration projects in Australia. Its main assets in production are KINGSVILLE DOME and ROSITA in USA, its main asset in development is ROCA HONDA in USA and its main exploration properties are VASQUEZ, MOSSER, MARSHALL, WEST LARGO, SOUTH TEXAS LEASE and CROWPOINT in USA and MTONYA, CHURCHROCK / MANCOS and NOSE ROCK in Australia. Uranium Res. is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is US$ 189.9 millions as of today (€ 169.7 millions). Its stock quote reached its highest recent level on April 27, 2007 at US$ 9.99, and its lowest recent point on April 05, 2019 at US$ 0.13. Uranium Res. has 27 929 584 shares outstanding. |
Financings of Uranium Resources Inc. |
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Financials of Uranium Resources Inc. |
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Project news of Uranium Resources Inc. |
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Corporate news of Uranium Resources Inc. |
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