Uranium Resources, Inc. (NASDAQ: URRE) (URI) today announced certain
terms of its previously announced rights offering ("Rights Offering") in
which all existing URI shareholders and warrant holders, subject to
applicable law, may participate on an equal, proportional basis in
purchasing common shares. The Company anticipates launching the Rights
Offering on February 7, 2013 and seeks to raise up to $13.0 million.
Under the Rights Offering, each URI shareholder and warrant holder will
receive one non-transferrable subscription right for each share of
common stock owned or subject to a warrant as of 5:00pm ET on January
28, 2013 (the "Record Date"). Every subscription right will entitle the
holder to purchase 0.3119 of a share of common stock of URI at a price
of $2.55 per whole share, representing a discount of approximately 20%
to the closing price of $3.19 on February 5, 2013 and a discount of
approximately 32% to the closing price of $3.77 on the Record Date.
Fractional shares of URI common stock will not be issued in this Rights
Offering. Any fractional shares resulting from the exercise of the
subscription rights will be eliminated by rounding down to the nearest
The Rights Offering will be available up to its expiration at 5:00pm ET
on February 27, 2013. The Company's Board of Directors, in its sole
discretion, may cancel the Rights Offering or extend the period for
exercising the subscription rights for additional periods ending no
later than March 12, 2013. The subscription rights are non-transferable
and will not be listed for trading on the NASDAQ Capital Market or any
other national market or exchange.
URI shareholders and warrant holders who elect to fully subscribe to the
Rights Offering will have the ability to participate in an
over-subscription privilege, allowing them to purchase additional shares
of URI common stock at the offering price. The number of shares of
common stock available under the over-subscription privilege will be
dependent upon the extent of participation of all of the Company's
shareholders and warrant holders that exercise their basic subscription
rights. Shareholders who do not exercise all of their basic subscription
rights will have their ownership interest, as a percentage of total
outstanding common shares, in URI reduced as a result. Any rights not
exercised prior to the expiration date will expire without value.
As previously announced, in December 2012, URI and Resource Capital Fund
V L.P. ("RCF") entered into a standby purchase agreement pursuant to
which RCF agreed, subject to certain conditions, to participate in the
Rights Offering and to exercise rights so that total proceeds to the
Company will equal at least $8.0 million, inclusive of the conversion of
the $5.0 million bridge loan facility.
This news release does not constitute an offer of any securities for
sale or a solicitation of an offer to buy any securities.
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. URI has
over 206,600 acres of uranium mineral holdings and 152.9 million pounds
of in-place mineralized uranium material in New Mexico and an NRC
license to produce up to 1 million pounds of uranium per year. URI has
an additional 1.3 million pounds of in-place mineralized uranium
material in Texas and South Dakota. The Company acquired these
properties over the past 20 years along with an extensive information
database of historic drill hole logs, assay certificates, maps and
Uranium Resources routinely posts news and other information about the
Company on its website at www.uraniumresources.com.
Safe Harbor 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 Company's
estimated mineralized uranium material and the anticipated terms and
launch date of the Rights 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, the spot price and
long-term contract price of uranium, the outcome of negotiations with
the Navajo Nation, the Company's ability to reach agreements with
current royalty holders, weather conditions, operating conditions at the
Company's mining projects, government and tribal 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, market reaction to a reverse stock
split, determinations of the NASDAQ Hearing Panel 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 news release.
Kei Advisors LLC
Deborah K. Pawlowski,
Mat Lueras, 505-269-8317