November 9, 2015
A New Chapter Begins - Headed Towards Production
CENTENNIAL, Colo. & PERTH, Australia--(BUSINESS WIRE)--
Uranium Resources, Inc. (Nasdaq: URRE; URI) announced today
closure of the merger with Anatolia Energy Ltd. On November 10, 2015,
the new URI shares exchanged for Anatolia shares will begin trading on
Nasdaq under its existing trading symbol (as URRE) and on the ASX as
CDIs under the new trading symbol 'URI'. On the same day, new URI quoted
options exchanged for Anatolia quoted options will begin trading on the
ASX as CDIs under the new trading symbol 'URIO'.
Highlights
-
Transformational merger with Anatolia is now completed, and
integration of the two businesses is well underway, putting URI on an
expedited path to return to uranium production.
-
URI is actively progressing the high-grade, low-cost Temrezli ISR
Project in Central Turkey, with the objective of commencing
development during CY2016.
-
With a cash operating cost of US$16.89/lb. and all-in operating costs
of less US$30.17/lb. indicated by the Pre-Feasibility Study (Feb
2015), the project is capable of generating a robust free cash flow
and returns to shareholders, even at the current uranium price.
-
URI is targeting completion and reporting of a formal update to the
Pre-Feasibility Study for the Temrezli Project in Q1 2016.
-
URI has significant management and operational experience, as well as
licensed ISR processing facilities to successfully implement its plan.
-
With an enterprise value of less than US$45 million today, and owning
one of the world's lowest cost uranium projects capable of entering
development in the near-term, URI is well placed for a share price
re-rating as it achieves a number of significant project milestones.
-
The new and expanded URI expects to continue with its demonstrated
proactive M&A strategy to grow the company and re-align its portfolio
pipeline towards the lowest-quartile cost projects.
-
URI has a well-timed production growth profile and significant
operational leverage to the favorable future outlook for uranium
prices.
Christopher M. Jones, President and Chief Executive Officer of URI, said,
'With this transformational merger now completed, we now turn our
immediate attention to completing the permitting process for the
high-grade, low-cost Temrezli ISR Project, and moving into development
during 2016. The more we study Temrezli, the more confident we are that
this is one of the best undeveloped in-situ recovery uranium projects in
the world.'
Temrezli Project Update
URI has retained Roscoe Postle
Associates, Inc. (RPA) to update the February 2015 Temrezli Preliminary
Feasibility Study (PFS), something that URI expects to have ready in Q1
2016. Included in the update to the PFS will be the consideration of the
substantial capital cost savings and other synergies expected to be
realized through the merger.
Concurrent with the ongoing environmental permitting process for
Temrezli in Turkey, URI's experienced technical team is working on
multiple fronts, from relocating its Rosita processing plant and
implementing wellfield design to securing current drilling quotes and
sourcing of new equipment for inclusion in the update to the PFS. The
results of this work will feed into the updated PFS.
The updated technical report and economic analysis of the project will
utilize key assumptions that URI applied to the project in the merger
due diligence process, including the relocation and utilization of the
Rosita facility's processing equipment. RPA is being supported in this
endeavor by DRA Taggart (processing and infrastructure factors) and
Arcadis Canada Inc. (environmental and social factors).
The low-cost profile of the Temrezli Project, and low capital cost to
develop the project, mean that URI is now positioned as one of the few
companies globally that has the potential to enter uranium production in
the near term. Furthermore, URI's history of operating ISR uranium
projects in the USA, its idle Rosita ISR facility available to be
utilized at Temrezli, and in-house expertise in this field, ensure that
URI has the ability to deliver the project into uranium production as
planned.
URI's shareholders on Nasdaq and ASX can expect to see regular news flow
from the Company as it achieves major project milestones at the Temrezli
Project, and continues with its proactive M&A strategy to reposition the
company with a lower cost operating profile.
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 44,700 acres (over 18,000 ha) with numerous
exploration targets, including the potential satellite Sefaatli Project,
which is 25 miles (40 km) southwest of the Temrezli Project. In Texas,
the Company has two licensed and currently idled processing facilities
and approximately 17,000 acres (6,900 ha) of prospective ISR projects.
In New Mexico, controls minerals rights encompassing approximately
190,000 acres (76,900 ha) in the prolific Grants Mineral Belt in New
Mexico, which holds one of the largest known 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.
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 timing of the listing of the Company's
securities, the benefits of the combination with Anatolia Energy, the
timing, occurrence or cost of production at the Company's properties,
and the timing and conclusions of the updated technical report and
economic analysis 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) the Company's ability to reach agreements with current
royalty holders; (d) operating conditions at the Company's projects; (e)
government and tribal regulation of the uranium industry and the nuclear
power industry; (f) world-wide uranium supply and demand; (g)
maintaining sufficient financial assurance in the form of sufficiently
collateralized surety instruments; (h) unanticipated geological,
processing, regulatory and legal or other problems the Company may
encounter, including in Turkey; (i) the ability of the Company to enter
into and successfully close acquisitions or other material transactions,
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.
View source version on businesswire.com : http://www.businesswire.com/news/home/20151108005086/en/
Uranium Resources:Wendy Yang, 303-531-0478
www.uraniumresources.com
or
Alpha
IR GroupRobert Winters, 929-266-6315
[email protected]
Source: Uranium Resources, Inc.
News Provided by Acquire Media
Close window | Back to top