Uranium Resources secures further $200 000 loan from shareholder

20th March 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Aim-listed Uranium Resources has entered into a further $200 000 unsecured loan facility agreement with its major shareholder and strategic investor Estes for the period to January 1, 2016.

The loan, which would bear interest at the London Interbank Offered Rate, would be used to fund working capital requirements, primarily those related to the company’s flagship Mtonya exploration asset in Tanzania.

The loan was in addition to the $1-million facility previously entered into and announced in 2013, and the $300 000 loan facility entered into and announced in March 2014.

The 2013 facility had been fully drawn down and the 2014 loan facility was drawn to $290 000, the company said in a statement on Friday.

Estes currently had no intention of seeking the repayment of the previous loan facilities.

“The board remains optimistic about the potential of its Mtonya uranium deposit, despite the depressed uranium market and we are encouraged by the continued support from our strategic investor Estes.

“With a maiden resource based on less than 10% of the prospective ground on Mtonya illustrating significant upside potential, and proof-of-concept mineralogy studies completed, we believe we have a regional mineralised roll-front feature that can be developed through in situ recovery, the most cost-effective and environmentally acceptable method of uranium extraction,” commented MD Alex Gostevskikh.

He added that the funds would be conservatively used for the company's operating and tenure expenditures as it examined strategic options to advance Mtonya.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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