Uranium Energy Corp. Restructures Surety Bonds to Increase Capital

Uranium Energy (NYSE MKT:UEC) announced that it has secured $5.6 million of surety bonds, replacing an equivalent amount of reclamation deposits related to future decommissioning activities in South Texas. The bonds require a cash collateral of $1.7 million allowing $3.9 million of previously restricted cash to become available.

According to the press release:

(Uranium Energy) has secured $5.6 million of surety bonds meeting the financial surety requirements and replacing an equivalent amount of reclamation deposits related to future decommissioning activities in South Texas. These bonds are subject to a 2% annual premium and require cash collateral of $1.7 million, allowing for the release of $3.9 million of previously restricted cash to the Company.

Amir Adnani, President and CEO, said:

The $3.9 million of capital will provide further flexibility to continue advancing our South Texas portfolio and other regional projects. The recent upward movement in the uranium spot price and approved restart of two reactors at Sendai Nuclear Power Station in Japan are both positive indicators for the industry. This boost to the Company’s treasury will aid in our ability to capitalize on operational and development opportunities, including the ramp-up of uranium production as market conditions warrant.

Click here to read the Uranium Energy Corp. (NYSE,MKT:UEC) press release