Uranium Resources(URA) has entered into a further US$300 000 loan facility agreement with its major shareholder and strategic investor Estes to support the development of its Mtonya ISR uranium project in Tanzania.
The loan, which is unsecured, is available for the period to 1 January 2015 and bears interest at LIBOR, will be used to fund working capital requirements. This is in addition to the US$1 million facility previously entered in to and announced on 26 March 2013. This 2013 facility has been fully drawn down.
“As we are finalising the 2014 exploration programme that is targeting to expand the maiden resource of our flagship Mtonya uranium project, we are pleased to have the continued support from Estes,” said URA managing director Alex Gostevskikh.
“With a maiden resource based on less than 10% of the prospective ground on the Mtonya illustrating significant upside potential, and proof-of-concept mineralogy studies completed, we believe we have a regional mineralised roll-front feature that can be developed through in-situ recovery, the most cost-effective and environmentally acceptable method of uranium extraction. These funds will be conservatively used for the company’s operating and tenure expenditures as we examine strategic options to advance Mtonya.”