Uranium ResourcesInc. said April 8 that it has signed a definitive to sell subsidiary to
Hydro Resources holds Uranium Resources' Churchrock and Crownpoint uranium properties in New Mexico.
Laramide will pay about US$5.3 million in cash and issue a US$7.3million, three-year promissory note over the properties, which will carry an initialinterest rate of 5%. The interest rate will then increase to 10% if and when Laramidedecides to move forward with commercial production at Churchrock.
Principal payments of approximately US$2.4 million are due andpayable on the anniversary of the closing in 2017, 2018, and 2019. Interest willbe payable on a quarterly basis; however, no interest will be payable before thefirst principal payment in 2017.
Laramide will also grant Uranium Resources an option to acquireLaramide's La Saluranium project for US$4 million, the proceeds of which would reduce the amountowed of the promissory note.
Proceeds from the sale will strengthen Uranium Resources' position,company President and CEO Christopher Jones said in the statement. It will alsofund development of the company's Temrezliin situ recovery project in Turkey and allow Uranium Resources to submit permitapplications by the fourth quarter.
The company expects the permits to be granted by mid-2017, witha final investment decision expected at the end of 2017.