PERTH (miningweekly.com) – ASX-listed Uranium Resources will retire its A$8-million debt due to Resource Capital Fund (RCF).
The energy metals developer on Wednesday announced a transaction, which would see an investor purchase an initial A$2.5-million of notes from RCF. These notes would be exchanged for a share of Uranium Resources' common stock.
The investor has also agreed to purchase the remaining A$5.5-million of notes and exchange these notes for common stock, subject to certain conditions.
“With the execution of these agreements and with the anticipated favourable support of the stockholders, Uranium Resources can be debt free after the process completes in the spring of 2017, allowing us to invest in the growth of our business,” said Uranium Resources president and CEO Christopher Jones.
He noted that in spite of the difficult capital markets, Uranium Resources has been able to fundamentally change its business model, both from a financial perspective and from a growth prospective with its energy metals development business.