22nd Dec 2006 13:03
Uranium Resources PLC22 December 2006 22nd December 2006 Uranium Resources plc ('Uranium Resources' or 'the Company') Raises £1.85 million to advance uranium exploration in Tanzania Uranium Resources plc, the AIM traded uranium exploration and developmentcompany, has received binding commitments to raise £1.85 million through theissue of 73,900,000 new ordinary shares at 2.5p per share. The Company expectsto announce shortly that is has received binding commitments in respect of afurther 6,100,000 new ordinary shares on the same terms. The proceeds of theplacing, conducted with new institutional and private investors and thedirectors of the Company, will be utilised to advance its existing portfolio ofuranium assets in Tanzania and for working capital. The new investors includeGeiger Counter Ltd. Uranium Resources is primarily focused in the Karoo Basin in Southern Tanzania,where it currently has prospecting licences and applications spanning circa7,000 sq km, making it one of the largest exploration land holders in this area.To develop these areas it has signed a farm in agreement with Western Metals Ltd(ASX:WMT), in respect of five licences where Uranium Resources is free carried.The Company also has a joint venture agreement with WMT in respect of anadditional three licences acquired earlier this month. The Company is currently preparing for the Tanzanian field season in April 2007,which will include further trenching, ground radiometric surveys, airborneradiometrics and drill access preparation for drilling. Subject to completion ofnegotiations with a drilling contractor, we are currently aiming to commencedrilling in June 2007. Uranium Resources director Ross Warner said: "We were very pleased with thedemand for the placing which will enable us to advance what we believe to be anexciting portfolio of exploration assets, in a prospective area for uranium. Weare at an early stage of development, however we feel there is a hugeopportunity for the Company to build upon its portfolio of uranium assets andcapitalise on the rising demand for uranium investment opportunities. "Initial trenching results from our Mtonya licences look promising, confirminghigh grade uranium mineralisation in channel samples. It is our aim to advanceour licences in the Karoo Basin and continue reviewing other potential projectsin known uranium districts in Tanzania and other parts of the world. Throughexpanding our operations in Africa, we hope to strengthen our relationships withuranium industry specialists and become a significant player in the uraniummarket. "The Company will now develop plans to potentially list on the Australian StockExchange. The Board believes that such a move will alleviate the liquidityissues that our shareholders face on AIM and reduce or eliminate the disparityin valuations between the Company and Western Metals." The Company proposes to issue the new shares on 15 January 2007. Applicationwill be made for the admission of the new ordinary shares to trade on the AIMmarket. The new ordinary shares will rank pari passu with the existing ordinaryshares of 0.1p each in the Company and dealings in these new ordinary shares areexpected to commence on 15 January 2007. Each of the directors has participated in the fundraising as follows: New Shares Total Shares Total shareholding Hugh Warner 3,000,000 24,706,666 8.49%* James Pratt 3,000,000 4,000,000 1.37%* Ross Warner 2,000,000 3,000,000 1.03%* * The director's total shareholding as a percentage of the expanded ordinaryshare capital of the Company. The total number of ordinary shares on issue following this issue will be284,900,000. **ENDS** For further information please see: www.uraniumresources.co.uk or contact: James Pratt Uranium Resources plc Tel: +61 412 743 382 Ross Warner Uranium Resources plc Tel: 07760 487 769 Hugh Warner Uranium Resources plc Tel: +618 9217 3350 Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Uranium Resources Plc