URI Merger Update

Just released on business wire in the USA on Friday:

Merger Update
Key highlights of the Merger include:

• The combination of URI’s in-house technical abilities and operational ISR experience and existing ISR processing infrastructure with Anatolia’s high-grade Temrezli Project provides the potential for a fast-track route to low-cost uranium production for both Anatolia and URI shareholders;
• Creation of a larger, international uranium development company that is expected to be more favourably positioned with potential utility customers;
• Exposure for shareholders to a project portfolio consisting of potential near-term uranium production offered by the Temrezli Project, mid-term and long-term uranium exploration projects in South Texas and New Mexico in the USA, and prospective exploration tenements in the Anatolia region of Central Turkey;
• Potential to improve the already strong economics of the Temrezli Project through reducing upfront capital costs and other additional synergies identified through the potential to utilize and relocate URI’s Rosita processing plant in South Texas;
• Improved access and greater appeal to global equity capital markets through listings on both the NASDAQ and the ASX, and expected Board representation from the United States, the United Kingdom and Australia;
• Strengthened share register through the amalgamation of the shareholders of each of the companies, which includes support from several major institutional shareholders for both companies (see June 3, 2015, news release); and
• Formation of a strong platform to continue developing a leading uranium production, development and exploration business through both organic growth and/or further corporate transactions.

Related to the Merger, URI executed a secured Loan whereby URI will provide up to A$2.0 million ($1.6 million) to Anatolia. On June 24, 2015, URI advanced A$1.0 million ($0.8 million) to Anatolia in the first of two tranches under the Loan.
The Loan provides Anatolia with working capital to ensure it progresses its Temrezli Project towards development in advance of the closing of the Merger, in addition to covering costs associated with the Merger. (Please refer to URI’s news release of June 28, 2015, for further details about the Loan.)
Upon both companies’ Merger approvals at their respective shareholder meetings, URI will seek to establish an Australian Securities Exchange (ASX) listing of Uranium Resources, Inc. shares through ASX-listed CHESS Depositary Interests (CDIs), such that:

• Anatolia common stock shareholders may elect to receive their consideration shares as either URI shares traded on the ASX (in the form of CDIs) or URI shares traded on the NASDAQ Stock Market; and
• Anatolia option holders whose options are quoted on the ASX will receive their consideration options as URI options traded on the ASX (in the form of CDIs).

Upon closing of the Merger, URI expects to conduct further engineering work related to the relocation of parts of the Rosita ISR plant as well as satellite ion exchange units to Temrezli and to implement in-house detailed well field design and EPCM engineering. After completing the engineering work, URI expects to produce an updated technical report in the first half of 2016.

Texas & New Mexico Update
URI retains the Kingsville Dome ISR plant in South Texas on standby for a potential restart of production upon a sustained increase in uranium prices. In addition, URI recently purchased an historic Butler Ranch mineral data set to accelerate advancement of the Butler Ranch Project into production within 3-5 years. The Butler Ranch mineral data included:

• Historical uranium mineral resource estimates that cite 1,264,100 pounds of U3O8 within 427,100 tons averaging 0.15%, contained on the Company’s Butler Ranch properties (see Cautionary Note Regarding References to Non-Reserve Mineralized Material);
• Gamma-ray and geologic logs from more than 2,000 exploration and definition drill holes; and
• Maps, cross-sections and other geologic support information.

The historical resource estimates, logs, geological maps and reports were prepared by Conoco, Westinghouse and Susquehanna-Western and were acquired from a private party for $150,000. The parties will later negotiate the details of a 1% royalty on future production from URI’s Butler Ranch properties.
In the coming months, URI will work to confirm these resource estimates through a combination of data review, analysis, follow-up confirmation drilling where required, as well as the utilization of URI’s 2015 drilling program results as previously announced. URI’s intention is to provide an updated estimate of JORC-compliant resources once this analysis is complete.
URI’s mid-term path to production over the next five years features the Butler Ranch Project and Alta Mesa Este Project in South Texas and the Churchrock Project in the Grants Mineral Belt in New Mexico. The Butler Ranch and Alta Mesa Este projects are amenable to ISR and are located within 100 miles of the Kingsville Dome plant.
The large Churchrock Project in New Mexico, which requires a sustained higher uranium price to be economic, has federal permits for annual production of up to 3 million lbs. As part of URI’s recent Roca Honda sale to Energy Fuels, URI received several key blocks of unpatented lode mining claims adjacent to and near the Churchrock Project.

See the rest of the article on business wire.