Company also to acquire Neutron Energy for $38.1 million shares
By Devika Patel
Knoxville, Tenn., March 2 - Uranium Resources Inc. said it arranged a $10 million private placement of stock with Resource Capital Fund V LP.
The investor will buy 10.3 million common shares. The price per share of about $0.97 is a 3% discount to $1.00, the March 1 closing share price.
The company also said it plans to acquire Neutron Energy, Inc. in a stock-for-stock transaction. Neutron is a private uranium exploration and development company with significant assets located in the Grants Mineral Belt of New Mexico.
In the merger, Resource Capital will provide $20 million that will be used to retire the majority of Neutron's outstanding debt in exchange for URI common stock. The remainder of Neutron debt will be converted into URI common stock, resulting in URI acquiring Neutron on a debt-free basis.
A total of 37 million URI common shares will be issued for the merger, resulting in a total consideration of $38.1 million, based on URI's Feb. 24 closing stock price of $1.03.
"This acquisition represents a significant consolidation of uranium properties in New Mexico and will position URI as one of the largest U.S.-based uranium development companies," president and chief executive officer Don Ewigleben said in a press release.
"It also provides the combined company with significant scale, strategic resource development synergies in the Ambrosia Lake region and a previously permitted conventional mill site."
Uranium Resources, based in Lewisville, Texas, is a mineral exploration company focused on uranium.
| Issuer: | Uranium Resources Inc.
|
| Issue: | Common stock
|
| Amount: | $10 million
|
| Shares: | 10.3 million
|
| Price: | $0.97 (approximate)
|
| Warrants: | No
|
| Investor: | Resource Capital Fund V LP
|
| Pricing date: | March 2
|
| Stock symbol: | Nasdaq: URRE
|
| Stock price: | $1.00 at close March 1
|
| Market capitalization: | $93.53 million
|
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