Shares Of Uranium Resources Under Pressure Despite $12 Million Funding Arrangement

Shares of Uranium Resources, Inc. URRE were trading lower by nearly 5 percent after Monday's opening bell, erasing its strong pre-market performance when shares were higher by around 9 percent.

Uranium Resources announced it has reached a funding arrangement with Aspire Capital Fund to place up to $12 million of its stock over a term of 30 months. As part of the agreement, the company will control the timing and amount of any sales to Aspire Capital at a price that is based on the market value.

Uranium Resources stated the proceeds will be used for working capital and general corporate purposes.

Aspire Capital has no right to require any sales by Uranium resources but is obligated to make purchases when the company desires to sell shares of its stock to Aspire. In addition, Aspire Capital has agreed not to engage in any direct or indiret short selling or hedging of the company's stock.

Christopher M. Jones, President and Chief Executive Officer, said "With the execution of this Purchase Agreement, and upon shareholder approval, we will be able to access the capital necessary to fund our work, most importantly those activities directed at bringing the Temrezli Project to a final investment decision."

"Despite an extremely challenging commodity and capital markets environment, we have been able to make important progress to execute the strategy we defined three years ago – that is, to advance the development of low cost, near term production. We are excited about the future of this Company as we continue to reduce our costs and bring production nearer in time. We believe that the development of this low-cost ISR project will drive significant future value for our shareholders."