(MENAFN- ProactiveInvestors)
() has executed a binding $2 million loan agreement with Colorado based and NASDAQ listed company Uranium Resources Inc. (NASDAQ:URRE) to facilitate the planned fast-track to production.
This is part of their proposed merger to form a larger diversified uranium business.
Uranium Resources will provide the secured loan as working capital to continue progressing its Temrezli Project towards development in advance of the closing of the merger.
The first tranche of $1 million is available upon closing of the loan transaction and the second tranche is available to Anatolia after September 2015.
Loan Details
The Loan will mature on 31st December 2015 and will carry a 12% per annum interest rate.
It is convertible into Anatolia shares at a price of A$0.08 per share if there is a change of control of Anatolia Anatolia shareholders vote against the merger or if the merger does not otherwise close by 30th December 2015.
Interest will be payable in the form of Anatolia shares valued at the 20-day VWAP of Anatolia at the time of the interest payment or in cash at the election of Uranium Resources.
Should the Merger be terminated the Loan will become repayable within 4 months of that termination date however it would become repayable immediately in the event of a change of control of Anatolia.
Merger
Under the merger agreement Anatolia shareholders will be offered 0.06579 Uranium Resources shares for every 1 Anatolia share they own.
This values Anatolia at an offer price of A$0.115 per Anatolia share compared to last traded share price of $0.08.
Anatolia shareholders are expected to own 40.6% of the merged company and current Uranium Resources shareholders are expected to own 59.4%.
Combined cash of the two companies would be more than US$10.5 million (A$13.5 million) excluding restricted cash of US$3.9 million.
Uranium Resources has more than 200000 acres of mineral holdings in Texas and New Mexico with two 800000 pound per annum ISR uranium processing plants and associated infrastructure in South Texas.
This brings the possibility of greatly reducing the upfront capital costs if the merged company can successfully relocate and utilise Uranium Resources’ Rosita ISR processing plant in South Texas.
Rosita is fit for Anatolia’s Temrezli Project in Turkey and has the added benefit of already being designed and constructed with the ability to scale up the production profile from 800000 pounds per annum to 1.6 million pounds per annum with some additional upgrades.
This would accommodate potential future production from satellite operations that may feed into the Temrezli central processing plant.
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