JOHANNESBURG (miningweekly.com) – Aim-listed Uranium Resources has entered into an unsecured $1-million loan facility agreement with its major shareholder and strategic investor Estes to fund its working capital requirements.
Pending the publication of the maiden resource at the company's flagship Mtonya uranium project, in southern Tanzania, the eighteen-month loan provided the explorer with nondilutionary financing, while it awaited these results.
The loan would bear interest at the London Interbank Offered Rate, with the company initially intended to draw down up to $200 000.
Uranium MD Alex Gostevskikh said on Tuesday that, following 26 485 m of drilling, the company had confirmed lateral extents of significant sandstone-hosted roll-front uranium mineralisation at Mtonya, which appeared to be amenable to in-situ recovery.
“The next step in the development for the company is the publication of our maiden Joint Ore Reserves Committee-compliant resource at Mtonya, which we expect within the next month,” he commented.