Uranium Resources, Inc. (NASDAQ: URRE) (URI) announced today that it has
secured $9 million in new surety bonds for the benefit of the Texas
Commission on Environmental Quality for remediation and reclamation
activities at the Company′s South Texas projects. The new bonds will
require $4.5 million in cash collateral and will replace the existing
$9.0 million of fully collateralized financial surety instruments that
are currently providing the financial surety requirements for the
projects. As a result of the lower cash collateral requirement, $4.5
million will be released back to URI.
'The restructuring of the bonding on our South Texas properties is a
meaningful step forward as we continue to work on recapitalizing the
Company, while simultaneously lowering our cost structure,? stated
Terence J. Cryan, Interim President and CEO of URI. 'The additional
capital provides added flexibility to advance our near-term priorities,
which are focused on developing our significant New Mexico uranium
assets, as well as maintaining our restoration activities in Texas so as
to be positioned to restart uranium production in South Texas in the
future.?
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
technical reports.
Uranium Resources routinely posts news and other information about the
Company on its website at
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
receipt of $4.5 million and new surety bonding arrangements and the
advancement of the Company′s near term priorities regarding development
in New Mexico and restarting operations in South Texas. 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 finalization of receipt of funds, the
success of the current rights offering to raise additional capital and
our ability to raise additional capital in the future, 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, maintaining sufficient financial
assurance in the form of sufficiently collateralized surety instruments
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.
