SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 15, 2011
URANIUM
RESOURCES, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
0-17171 |
75-2212772 |
||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
405 State Highway 121 Bypass, Building A, Suite 110 Lewisville, TX |
75067 |
|
(Address of principal executive offices) |
(Zip Code) |
(Registrant's telephone number, including area code): (972) 219-3330
N/A |
||
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 8.01. Other Events
On August 15, 2011, Uranium Resources, Inc. (NASDAQ: URRE) issued a press release providing an update on the Company’s activities and its liquidity position for the second quarter of 2011, as well as its strategy and outlook.
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 Press Release dated August 15, 2011
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Uranium Resources, Inc. |
|||
Dated: |
August 15, 2011 |
By: |
/s/ Thomas H. Ehrlich |
Thomas H. Ehrlich |
|||
Vice President and Chief Financial Officer |
3
Exhibit 99.1
Uranium Resources, Inc. Provides Second Quarter 2011 Update
LEWISVILLE, Texas--(BUSINESS WIRE)--August 15, 2011--Uranium Resources, Inc. (NASDAQ: URRE) (URI), today provided an update on the Company’s activities and its liquidity position for the second quarter of 2011 as well as its strategy and outlook.
Los Finados Exploration Project Continues to Move Forward
URI’s objectives in Texas are to explore for and develop a larger reserve base, advance current properties through licensing and permitting, lease additional targeted properties and work with its customers to redefine the terms of its sales agreements to enable better margins and greater likelihood of returning to production in Texas.
Don Ewigleben, President and CEO of URI, commented, “Less than ideal drilling conditions are resulting in somewhat higher than expected costs thereby reducing the number of potential holes drilled in the first phase. Nonetheless, we are still on track to have the drilling for the first phase completed by the end of September. As we have noted previously, based on water sampling tests, we believe this green field exploration site should be an excellent uranium prospect.”
Feasibility Study Progressing in New Mexico
URI’s focus in New Mexico is on the completion of its feasibility study to advance its Churchrock/Crownpoint project. The evaluation includes the economic analysis and operating requirements for the in situ recovery of its uranium assets that are amenable to this lower cost mining method which includes the wellfields, satellite plants and a central processing plant at Crownpoint.
Mr. Ewigleben, noted, “The feasibility study is moving along as planned and we are evaluating various scenarios specific to our priority production property, Church Rock Section 8 which has 6.5 million pounds of in-place mineralized uranium material. We are planning on accelerating our engineering activities in order to stay on target.”
Liquidity Position
Cash at June 30, 2011 was $8.2 million compared with $11.1 million at March 31, 2011 and $15.4 million at the end of 2010. The decrease from the sequential first quarter reflects ongoing reclamation activities in Texas, the costs associated with the feasibility study and $500,000 of funding to collateralize URI’s financial surety obligations. URI’s cash balance at July 31, 2011 was approximately $7.3 million.
Mr. Ewigleben concluded, “Given our plan to accelerate our engineering activities for our Churchrock project and our cash requirements for the evaluation of various strategic initiatives, we are currently weighing various alternatives and evaluating the timing associated with the need to raise additional capital.”
Teleconference and Webcast
URI is hosting a conference call and webcast today at 11:00 a.m. ET. During the call, management will provide an update on URI’s strategies, outlook, and progress in advancing its Texas and New Mexico properties. A question-and-answer session will follow.
The URI conference call can be accessed by dialing (201) 689-8562. The live listen-only audio webcast can be monitored on the Company’s website at www.uraniumresources.com, where it will be archived afterwards. A transcript will also be placed on the Company’s website, once available.
To listen to the archived call, dial (858) 384-5517, and enter replay pin number 375633. The replay will be available from 2:00 p.m. ET the day of the teleconference until 11:59 p.m. ET Monday, August 22, 2011.
About Uranium Resources, Inc.
Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 8 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and 101.4 million pounds of in-place mineralized uranium material in New Mexico and a NRC license to produce up to 1 million pounds of uranium per year. The Company acquired these properties over the past 20 years along with an extensive information database of historic mining logs and analysis. None of URI’s properties is currently in production.
URI’s strategy is to fully exploit its resource base in New Mexico and Texas, expand its asset base both within and outside of New Mexico and Texas, partner with larger mining companies that have undeveloped uranium or with junior mining companies that do not have the mining experience of URI, as well as provide restoration expertise to those that require the capability or lack the proficiency.
Uranium Resources routinely posts news and other information about the Company on its Web site at www.uraniumresources.com.
Safe Harbor 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 the Company’s mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for properties in South Texas and New Mexico, planned dates for commencement of production at such properties, revenue, cash generation and profits 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, the spot price and long-term contract price of uranium, weather conditions, operating conditions at the Company’s mining projects, government regulation of the mining industry and the nuclear power industry, world-wide uranium supply and demand, availability of capital, timely receipt of mining and other permits from regulatory agents and other factors which are more fully described in the Company’s documents filed 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.
TABLES FOLLOW.
URANIUM RESOURCES, INC. |
|||||||||
June 30, 2011 |
December 31, |
||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 8,243,704 | $ | 15,386,472 | |||||
Receivables, net |
|
136,378 |
|
46,244 |
|||||
Prepaid and other current assets |
|
161,837 |
|
|
179,231 |
||||
Total current assets |
|
8,541,919 |
|
15,611,947 |
|||||
Property, plant and equipment, at cost: | |||||||||
Uranium properties |
|
82,644,306 |
|
82,989,579 |
|||||
Other property, plant and equipment |
|
867,371 |
|
905,511 |
|||||
Less-accumulated depreciation, depletion and impairment |
|
(64,468,795 |
) |
|
(64,282,888 |
) | |||
Net property, plant and equipment |
|
19,042,882 |
|
19,612,202 |
|||||
Long-term investment: | |||||||||
Certificates of deposit, restricted |
|
8,355,720 |
|
7,337,366 |
|||||
$ | 35,940,521 | $ | 42,561,515 | ||||||
Current liabilities: | |||||||||
Accounts payable | $ |
757,752 |
$ |
602,190 |
|||||
Current portion of asset retirement obligations |
|
1,156,526 |
1,239,588 | ||||||
Royalties and commissions payable |
|
665,745 |
665,745 | ||||||
Deferred compensation |
|
— |
697,028 | ||||||
Accrued legal settlement |
|
— |
1,375,000 | ||||||
Accrued interest and other accrued liabilities |
|
382,094 |
348,269 | ||||||
Current portion of capital leases |
|
69,257 |
83,183 | ||||||
Total current liabilities |
|
3,031,374 |
5,011,003 | ||||||
Asset retirement obligations |
|
3,616,050 |
3,804,057 | ||||||
Other long-term deferred credits |
|
500,000 |
500,000 | ||||||
Long term capital leases, less current portion |
|
87,530 |
119,588 | ||||||
Long-term debt, less current portion |
|
450,000 |
450,000 | ||||||
Commitments and contingencies | |||||||||
Shareholders’ equity: | |||||||||
Common stock, $.001 par value, shares | |||||||||
authorized: 200,000,000; shares issued and outstanding (net | |||||||||
of treasury shares): 2011—93,528,362; 2010—92,430,306 | 93,566 | 92,468 | |||||||
Paid-in capital |
|
169,268,731 |
167,971,955 | ||||||
Accumulated deficit |
|
(141,097,312 |
) | (135,378,138 | ) | ||||
Less: Treasury stock (38,125 shares), at cost |
|
(9,418 |
) | (9,418 | ) | ||||
Total shareholders’ equity |
|
28,255,567 |
32,676,867 | ||||||
$ |
35,940,521 |
$ |
42,561,515 |
URANIUM RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: | ||||||||||||||||
Uranium sales | $ | — | $ | — | $ | — | $ | — | ||||||||
Total revenue | — | — | — | — | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of uranium sales | ||||||||||||||||
Operating expenses | 213,960 | 88,452 | 365,109 | 230,310 | ||||||||||||
Accretion/amortization of asset retirement obligations | 30,820 | 39,881 | 69,019 | 77,288 | ||||||||||||
Depreciation and depletion | 158,453 | 192,359 | 331,182 | 389,846 | ||||||||||||
Impairment of uranium properties | 282,184 | 179,200 | 588,098 | 389,647 | ||||||||||||
Exploration expenses | 16,789 | 725 | 108,687 | 725 | ||||||||||||
Total cost of uranium sales | 702,206 | 500,617 | 1,462,095 | 1,087,816 | ||||||||||||
Loss from operations before corporate expenses | (702,206 | ) | (500,617 | ) | (1,462,095 | ) | (1,087,816 | ) | ||||||||
Corporate expenses— | ||||||||||||||||
General and administrative | 1,968,427 | 1,455,379 | 4,267,418 | 3,178,612 | ||||||||||||
Depreciation | 33,787 | 36,234 | 68,666 | 71,250 | ||||||||||||
Total corporate expenses | 2,002,214 | 1,491,613 | 4,336,084 | 3,249,862 | ||||||||||||
Loss from operations | (2,704,420 | ) | (1,992,230 | ) | (5,798,179 | ) | (4,337,678 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (4,985 | ) | (2,910 | ) | (10,605 | ) | (10,833 | ) | ||||||||
Interest and other income, net | 16,724 | 274,584 | 89,610 | 279,805 | ||||||||||||
Net loss | $ | (2,692,681 | ) | $ | (1,720,556 | ) | $ | (5,719,174 | ) | $ | (4,068,706 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.07 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.07 | ) | ||||
Weighted average common shares and common equivalent shares per share data: | ||||||||||||||||
Basic | 93,429,103 | 58,814,401 | 93,346,428 | 57,835,348 | ||||||||||||
Diluted | 93,429,103 | 58,814,401 | 93,346,428 | 57,835,348 |
URANIUM RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
Six Months Ended June 30, |
||||||||
2011 | 2010 | |||||||
Operating activities: | ||||||||
Net loss | $ | (5,719,174 | ) | $ | (4,068,706 | ) | ||
Reconciliation of net loss to cash used in by operations— | ||||||||
Accretion/amortization of asset retirement obligations | 69,019 | 77,288 | ||||||
Depreciation and depletion | 399,848 | 461,096 | ||||||
Impairment of uranium properties | 588,098 | 389,647 | ||||||
Decrease in restoration and reclamation accrual | (752,961 | ) | (653,544 | ) | ||||
Stock compensation expense | 579,502 | 525,475 | ||||||
Other non-cash items, net | 2.288 | 14,859 | ||||||
Effect of changes in operating working capital items— | ||||||||
(Increase) decrease in receivables | (90,134 | ) | 62,572 | |||||
Increase (decrease) in prepaid and other current assets | 17,394 | (77,060 | ) | |||||
Decrease in payables, accrued liabilities and deferred credits | (1,185,614 | ) | (80,476 | ) | ||||
Net cash used in operations | (6,091,734 | ) | (3,348,849 | ) | ||||
Investing activities: | ||||||||
Increase in certificates of deposit, restricted | (1,018,354 | ) | (29,842 | ) | ||||
Additions to property, plant and equipment— | ||||||||
Kingsville Dome | (73,913 | ) | (89,400 | ) | ||||
Vasquez | (15,100 | ) | (7,500 | |||||
Rosita/Rosita South | (92,080 | ) | (14,048 | ) | ||||
Los Finados | (88,237 | ) | — | |||||
Churchrock | (9,899 | ) | (90,266 | ) | ||||
Other property | (28,812 | ) | (6,573 | ) | ||||
Proceeds from joint venture agreement | 300,000 | — | ||||||
Net cash used in investing activities | (1,026,395 | ) | (237,629 | ) | ||||
Financing activities: | ||||||||
Payments on borrowings | (45,984 | ) | (61,894 | ) | ||||
Issuance of common stock, net | 21,345 | 8,979,506 | ||||||
Net cash from (used in) financing activities | (24,639 |
) |
8,917,612 | |||||
Net increase (decrease) in cash and cash equivalents | (7,142,768 | ) | 5,331,134 | |||||
Cash and cash equivalents, beginning of period | 15,386,472 | 6,092,068 | ||||||
Cash and cash equivalents, end of period | $ | 8,243,704 | $ | 11,423,202 | ||||
Non-cash transactions: | ||||||||
Issuance of common stock in settlement of deferred compensation | $ | 697,027 | $ | — | ||||
Issuance of restricted stock to employees and directors | $ | 176 | $ | 339 |
CONTACT:
Uranium Resources, Inc.
Don Ewigleben, 972-219-3330
President
& Chief Executive Officer
or
Investor:
Kei
Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com
or
Media:
Uranium
Resources, Inc.
Mat Lueras, 505-269-8317
Vice President,
Corporate Development
mlueras@uraniumresources.com