Subscription to raise �900,000
Uranium Resources plc, the AIM listed uranium
exploration and development company, has raised approximately �900,000 (before expenses) through a
subscription of 35.25 million new ordinary shares of 0.1 pence each ('Placing
Shares') in the Company at a price of approximately 2.55 pence per ordinary
share ('the Placing'). The Placing has been subscribed to by Uranium
Resources' major shareholder and strategic investor Estes
Limited ('Estes') and a number of new investors arranged by Optiva
Securities Ltd.
As announced on 17 November 2010 the Company has
completed its 2010 drilling campaign and is waiting for the assay results to be
returned from independent laboratories and the Company has approximate cash
resources of �100,000. The proceeds of the Placing will be used for
general working capital.
On completion of the Placing the following changes
will occur to the interests of Estes in the ordinary share capital of the
Company.
|
Previous Shares
|
New Shares
|
Total Shares
|
Percentage of Company's Enlarged Issued Share Capital
|
Estes Limited (1)
|
139,000,000
|
23,500,000
|
162,500,000
|
33.7%
|
|
|
|
|
|
(1)
Viacheslav Medvedev, a non-executive director of the
Company, is a director of Estes Limited and has been appointed to the board of
the Company by Estes.
The subscription by Estes ('Related Party') is a
related party transaction as defined by Rule 13 of the AIM Rules for
Companies. Accordingly, the independent directors (being Alex Gostevskikh, Andrew Lewis, James Pratt, Hugh Warner and
Ross Warner), having consulted with the Company's nominated adviser, consider
that the terms of the Placing and the Related Parties' participation are fair and reasonable in so far as the Company's
shareholders are concerned.
As previously announced, the City Code on Takeovers
and Mergers ('City Code') does not apply to the Company because the Company's
place of central management and control is not located within the UK, the
Channel Islands or the Isle of Man. Investors in the Company should therefore
be aware that they are not afforded the protections of the City Code.
The Company's articles of association contain a provision
entitling (but not requiring) the directors of the Company ('the Directors') to
disenfranchise any shareholder who fails to make a mandatory offer in
circumstances where such shareholder would be required to do so if the City
Code applied to the Company ('the Mandatory Bid Provision'). For so long
as the City Code does not apply to the Company and Estes holds between 30 per
cent. and 50 per cent. of the
ordinary shares in the Company, the Mandatory Bid Provision will apply (at the
discretion of the Directors) in respect of this Placing and any future
acquisition of ordinary shares by Estes in the Company. The independent
directors have considered the size of Estes' shareholding in the Company (post
Placing) and the benefits of continued support from Estes (among other factors)
and confirm that they do not intend to disenfranchise Estes in the event that
Estes does not make a mandatory bid on completion of the Placing. Estes
has no current intention of making a bid.
The Placing is conditional inter alia on
admission of the Placing Shares to trading on AIM ('Admission'). It is expected
that Admission will occur, and dealings in the Placing Shares will commence at
8 a.m. on 26 November 2010. The Placing Shares, when issued, will rank pari passu in all
respects with the Company's existing issued ordinary shares.
Following
completion of the Placing, there will be 481,743,750 ordinary shares of 0.1p in
issue.
**ENDS**
For further information please visit
www.uraniumresources.co.uk or contact:
Alex Gostevskikh
|
Uranium Resources
plc
|
Tel: +44 (0) 7997 713377
|
Ross Warner
|
Uranium Resources
plc
|
Tel: +44 (0) 7760 487769
|
Hugh Warner
|
Uranium Resources
plc
|
Tel: +61 (0) 413 621 652
|
Samantha Harrison
|
Ambrian Partners Ltd (Nomad)
|
Tel: +44 (0) 20 7634 4700
|
Ben Wright
|
Ambrian Partners Ltd (Nomad)
|
Tel: +44 (0) 20 7634 4700
|
Hugo
de Salis
|
St Brides Media & Finance Ltd
|
Tel: +44 (0) 20 7236 1177
|
Felicity Edwards
|
St Brides Media & Finance Ltd
|
Tel: +44 (0) 20 7236 1177
|
About
Uranium Resources
Uranium Resources plc is an AIM listed
exploration and development company. It is the Company's strategy to
advance its existing assets and strengthen its portfolio via opportunistic
acquisition. Uranium Resources has uranium licences
in the highly prospective Karoo Basin
in Southern Tanzania.
Felicity Edwards
St Brides Media and Finance Ltd
Chaucer House
38 Bow Lane
London
EC4M 9AY
Tel: +44 (0) 207 236
1177
Mob: +44 (0) 7748
843871
Fax: +44 (0) 207 236
1188
Email: felicity@sbmf.co.uk
Web: www.stbridesmedia.co.uk