Uranium Resources Reports First Quarter 2015 Results

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Uranium Resources, Inc. (NASDAQ: URRE) announced that the Company has reduced its quarterly cash expenditures composed of mineral property and general and administrative expenses, excluding non-cash stock compensation, by 24% to $2.5 million in the 1Q 2015 from $3.2 million in 1Q 2014.

Christopher M. Jones, President and Chief Executive Officer, said, “Our forecasted cash expenditures this year and funds available ensure we have twelve solid months of running room. I am proud of the work our team has done containing costs.”

Business Highlights for 1Q 2015 and to date:

Exploration and financial highlights

• The Company reported that all five drill holes from a completed preliminary drill program at the Butler Ranch Project in South Texas encountered multiple zones of anomalous to low-grade levels of uranium mineralization in March 2015.
• Twenty-seven rotary drill holes, totaling 16,715 feet, were completed in the phase one drilling program at the Alta Mesa Este Project in South Texas. Mineralization has been encountered, and detailed analysis is underway.
• Net cash used in operating activities decreased by 28% to $2.7 million in 1Q 2015 compared with $3.7 million in 1Q 2014.
• The Company successfully raised gross proceeds of $6.0 million in March 2015 from a direct registered offering.

Financial Overview

Mineral property expenses were 8% lower at $809,000 in 1Q 2015 compared with $880,000 in 1Q 2014. Cash general and administrative expenses, excluding non-cash stock compensation, decreased by 30% to $1.6 million in 1Q 2015 from $2.3 million in 1Q 2014. General and administrative costs, including stock compensation as shown on the Income Statement, decreased 21% to $2.1 million in 1Q 2015 from 1Q 2014.

Net cash used in operating activities was $2.7 million in 1Q 2015 compared with $3.7 million in 1Q 2014. The Company achieved a 28% improvement in net cash used in operating activities, while commencing new exploration drilling programs at the Butler Ranch and Alta Mesa Este projects with exploration and evaluation costs of $220,000 in 1Q 2015. A total of $0.8 million has been allocated for the exploration drilling programs for 2015.

The reductions in cash used in operating activities were primarily due to a decrease in mineral property expenses by $71,000 in 1Q 2015 compared with 1Q 2014, which was mostly the result of the completion of a settling pond clean-out project at the Kingsville Dome Project, the completion of groundwater restoration at the Kingsville Dome and Vasquez projects in 2014 and lower general and administrative expenses.

Net loss of $3.8 million in 1Q 2015 is compared with a net loss of $3.5 million in 1Q 2014, which included a non-cash gain in derivative instruments of $654,000. For 1Q 2015, the Company’s convertible Loan Agreement no longer qualifies as a derivative instrument. Also impacting the net loss in 1Q 2015 was an increase in interest expense, partially offset by a decrease in general and administrative expenses in 1Q 2015 compared with 1Q 2014.

Tables 1 and 2: Financial Summaries (unaudited)

As of May 3, 2015, cash and cash equivalents total approximately $6.9 million. Total shares outstanding are currently 29.8 million.

In March 2015, the Company sold units in a $6.0 million registered direct offering. Each unit, priced at $1.50, consisted of one common share and a warrant to purchase 0.55 of a common share at an exercise price of $2.00 per whole common share. The warrants are exercisable for five years commencing on September 6, 2015.

Exploration Update

Upon completion of the preliminary drilling program at the Butler Ranch Project in South Texas in March 2015, the Company reported that all five drill holes encountered multiple zones of anomalous to low-grade levels of uranium mineralization. The drilling program extended the zone of uranium mineralization within multiple sandstone units along the projected trend for 400 feet and widths of up to 200 feet. (Please refer to the Company’s news release of March 23, 2015 for further details.)

The phase one drilling program was completed at the Alta Mesa Este Project on May 9, 2015. A majority of the holes intersected anomalous levels of radioactivity, and encountered indications of an oxidation-reduction interface, which is where uranium mineralization can be hosted. The Company expects to evaluate the preliminary drill results against historical records to reevaluate the geological characteristics and controls of the mineralizing system in the project area and determine the potential of a phase two drilling program.

Uranium Market

The weekly average spot price of uranium was $35.75 per pound on May 4, 2015, according to Ux Consulting. Since the end of 1Q 2015, the uranium weekly average spot price has softened from $39.50 per pound. The long term uranium price remains unchanged at $49.00 per pound since November 2014.

Outlook

The Company’s goals for 2015 are to:

• Achieve zero lost time incidents,
• Complete and evaluate drill results from the phase one exploration drilling programs at Butler Ranch and Alta Mesa Este projects in South Texas,
• Establish the scope and timing for phase two exploration programs,
• Achieve the targeted cash expenditure level of $9.0 million, and
• Increase shareholder value by adding to our portfolio of quality mineralized material and pursuing opportunistic, value-accretive acquisitions and partnering opportunities.

About Uranium Resources

Uranium Resources, Inc. was incorporated in 1977 to explore, develop and recover uranium. Uranium Resources has two licensed and currently idled processing facilities and approximately 17,000 acres of prospective in situ recovery (ISR) projects in Texas. In New Mexico, the Company holds a federal Nuclear Regulatory Commission license to recover up to three million pounds of uranium per year using the ISR process at certain properties and controls minerals rights encompassing approximately 195,000 acres in the prolific Grants Mineral Belt in New Mexico, which holds one of the largest known concentrations of sandstone-hosted uranium deposits in the world. The Company acquired these properties along with an extensive uranium information database of historic drill hole logs, assay certificates, maps and technical reports for the Western United States.

Cautionary Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. All statements addressing operating performance, events or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to (i) the timing or occurrence of production at or restoration of the Company’s properties, (ii) expected reductions in the Company’s operating expenses and cash spend, (iii) the timing, completion and results of exploration drilling at the Company’s projects in South Texas, (iv) the adequacy of funding for the Company for 12 months, (v) additions of reserves and resources, including through acquisitions and partnering opportunities, and (vi) the achievement of zero lost time incidents in 2015 are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, (a) the Company's ability to raise additional capital in the future; (b) spot price and long-term contract price of uranium; (c) the Company's ability to reach agreements with current royalty holders; (d) operating conditions at the Company's projects; (e) government and tribal regulation of the uranium industry and the nuclear power industry; (f) world-wide uranium supply and demand; (g) maintaining sufficient financial assurance in the form of sufficiently collateralized surety instruments; (h) unanticipated geological, processing, regulatory and legal or other problems the Company may encounter; (i) the ability of the Company to enter into and successfully close acquisitions or other material transactions, and other factors which are more fully described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

Qualified Person

Dean T. “Ted” Wilton, CPG-7659, Chief Geologist and Vice President of Uranium Resources, is a Qualified Person under Canada National Instrument 43-101. Mr. Wilton supervised the preparation of the scientific and technical information regarding the projects in this news release.

Learn more about the Company atwww.uraniumresources.com

Sign up for Email Alerts athttp://investor.uraniumresources.com/alerts.cfm?

Uranium Resources, Inc.
Wendy Yang, Investor Relations
303-531-0478
[email protected]

Source: Uranium Resources, Inc.

You May Also Be Interested In

• Shake Shack (SHAK) Announces Resignation of Jonathan Sokoloff from Board, Cuts Board Size to 10 from 11
• Genetic Technologies (GENE) Announces $2 Million Registered Direct Offering
• Biohaven Pharma (BHVN) Prices 5.6M Share Offering at $41/sh