Uranium Resources to Retire $8 Million Indebtedness with RCF

Uranium Resources (NASDAQ:URRE) has announced a deal to retire its $8 million in indebtedness due to Resource Capital Fund.
As quoted in the press release:

Under the deal, an investor has purchased an initial $2.5 million amount of notes from RCF and has entered into an agreement to exchange these notes for shares of URI’s common stock. The investor has also agreed to purchase the remaining $5.5 million of notes from RCF and exchange such notes for shares of URI’s common stock subject to certain conditions, as described below. Concurrently, RCF has also agreed to extend the maturity date for the indebtedness from December 31, 2016 until March 31, 2017 in order to allow the process to be completed in an orderly fashion.

Christopher M. Jones, president and CEO, said:

With the execution of these agreements and with the anticipated favorable support of the stockholders, URI can be debt free after the process completes in the spring of 2017, allowing us to invest in the growth of our business.   We appreciate the efforts by RCF in making this major improvement to our balance sheet possible.  In spite of difficult capital markets, URI has been able to fundamentally change our business model – both from a financial perspective and from a growth perspective with our energy metals development business.

Click here to read the full press release.