UNITED STATES
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): |
July 19, 2012 |
Uranium Resources, Inc. |
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(Exact name of registrant as specified in its charter) |
Delaware |
0-17171 |
75-2212772 |
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(State or other jurisdiction |
(Commission |
(I.R.S. Employer |
405 State Highway 121 Bypass, |
75067 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: |
(972) 219-3330 |
Not Applicable |
||
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 1.01 |
Entry into a Material Definitive Agreement |
As previously disclosed, on April 5, 2012, Hydro Resources, Inc. (“HRI”), the Registrant’s wholly-owned subsidiary, received a Notice of Violation and Order to Comply with the Navajo Nation Civil Trespass Act (the “NOV”) from the Navajo Nation (the “Nation”).
On July 19, 2012, HRI and the Nation resolved the NOV by entering into a Temporary Access Agreement (the “Agreement”). Under the terms of the Agreement, HRI and its contractors may now access Section 8 through either Section 9 or 17 to support site visits by the Nuclear Regulatory Commission and to satisfy other administrative permitting and licensing requirements related to the Churchrock Project. The Agreement does not extend to construction-related or earth-disturbing activities. HRI has further agreed to remediate any radioactive contamination now existing on Sections 8 and 17 surface lands prior to commencing mining operations on Section 8. Under the terms and for the duration of this Agreement, HRI has agreed to the jurisdiction of the Navajo Nation. A copy of the Agreement is attached hereto as Exhibit 10.1.
HRI and the Nation are now actively engaged in confidential settlement negotiations in order to determine effective compliance with the remediation requirement included in the Agreement, including applicable clean-up standards, enforcement, and waste disposal, and to address longer-term surface access to the entire licensed Project site consistent with applicable law.
Item 8.01 |
Other Events. |
On July 31, 2012, the Registrant issued a press release relating to its entry into the Agreement. A copy of that press release is furnished as Exhibit 99.1 hereto.
Item 9.01 |
Financial Statements and Exhibits |
(d) Exhibits
Exhibit 10.1: | Temporary Access Agreement, dated as of July 19, 2012, between Hydro Resources, Inc. and the Navajo Nation. | |
Exhibit 99.1: | Press release dated July 31, 2012. |
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. |
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Dated: |
July 31, 2012 |
By: |
/s/ Thomas H. Ehrlich |
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Name: Thomas H. Ehrlich |
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Title: Vice President and Chief Financial Officer |
Exhibit Index
Exhibit
Number |
Description |
Exhibit 10.1: | Temporary Access Agreement, dated as of July 19, 2012, between Hydro Resources, Inc. and the Navajo Nation. |
Exhibit 99.1: | Press release dated July 31, 2012. |
EXHIBIT 10.1
TEMPORARY
ACCESS
AGREEMENT
This Agreement is entered into this 19th day of July, 2012 between the Navajo Nation, through its Deputy Attorney General, and Hydro Resources, Inc. (HRI) through its President and Chief Executive Officer.
Whereas, HRI owns certain property within the Church Rock Chapter, Navajo Nation, State of New Mexico, commonly referred to as Section 8 consisting of an approximately 174.5-acre tract of the southeast quadrant of Section 8; and
Whereas, the Navajo Nation recently determined and HRI understands that the State of New Mexico right of way connected with State Highway 566 does not intersect with Section 8; and
Whereas on October 12 and 13, 2011 HRI crossed over Navajo trust lands (specifically lands commonly referred to as Sections 17 and 9) for purposes of accessing Section 8; and
Whereas on April 5, 2012 the Navajo Nation Division of Natural Resources issued a Notice of Violation and Order asserting that HRI had committed a Civil Trespass violating 16 N.N.C. §2201 et seq. by crossing Navajo lands for purposes of accessing Section 8 without an appropriate right-of-way; and
Whereas the Navajo Nation Division of Natural Resources additionally assessed a civil penalty in the amount of $50.00 and further Ordered HRI to cease crossing Navajo lands for purposes of accessing Section 8 without applying for and obtaining an appropriate right-of- way, under Navajo law, the general Indian Right-of-Way Act, 25 U.S.C. §§323-328 and implementing regulations at 25 C.F.R. Part 169; and
Whereas the parties are desirous of settling this particular incident of alleged trespass and continuing their negotiations regarding the underlying issues surrounding this particular incident of alleged trespass, the parties hereto agree as follows:
1. By acceptance of this temporary access, HRI consents and submits to the full territorial, legislative, executive and judicial jurisdiction of the Navajo Nation within Navajo Indian country, including but not limited to jurisdiction to impose civil assessments or fines and to enter and enforce judgments for compensatory and punitive damages and equitable relief in connection with all activities conducted by HRI and its agents which have a proximate effect on persons or property within Navajo Indian country. HRI further covenants not to contest or challenge such jurisdiction in any forum on any basis not applicable generally to state jurisdiction, such as, by way of examples and not limitation, on the basis that such jurisdiction is inconsistent with the status of the Navajo Nation as an Indian nation, or that the Navajo Nation is not a government and its courts are not courts of general jurisdiction, or that the Navajo Nation does not possess the power to legislate and regulate for the general health and welfare over all lands, persons and activities within Navajo Indian country.
2. HRI further agrees to complete the remediation of any radioactive contamination now existing on Section 17 or Section 8 (“preexisting contamination”) prior to commencing its planned in-situ leach uranium operations on Section 8. The remediation of preexisting contamination on Section 17 will be completed in accordance with the Navajo Nation Comprehensive Response Compensation and Liability Act (NNCERCLA) 4 N.N.C. 2101 et seq. under either a negotiated remediation plan, an Administrative Order of Consent or a Unilateral Administrative Order. Any remediation of preexisting contamination deemed necessary by either the New Mexico state or federal governments on Section 8 will be completed in accordance with applicable state and/or federal law.
3. Consistent with paragraph 1 above HRI agrees to pay the Navajo Nation the $50.00 civil penalty assessed for the previously referenced alleged trespass that occurred in October 2011.
4. HRI further agrees not to cross any Navajo trust lands for purposes of accessing Section 8 or other lands owned or leased by HRI except pursuant to any lawful grant consented to by the Navajo Nation and granted by the United States, except as provided by Section 6 below.
5. HRI further agrees to dismiss with prejudice its pending appeal of the above-referenced Notice of Violation and Order before the Navajo Nation Office of Hearings and Appeals in Docket No. OHA-DNR-001-12.
6. The Navajo Nation hereby grants HRI temporary access to cross Navajo Nation trust lands for the limited purpose of accessing Section 8 during the upcoming visit of Nuclear Regulatory Commission representatives as well as for such other activities reasonable and necessary for the NRC’s, or HRI’s, access to Section 8 in support of permit or license requirements. The parties agree that the purpose of this temporary access is to satisfy administrative permit or license requirements. No construction activities or earth disturbance activities of any type are permitted pursuant to this temporary access agreement. “Temporary” shall mean not to exceed one business day, during which time HRI and its licensed contractors and representatives may access Section 8 via Section 9 or Section 17 without incurring a Notice of Violation and Order under the Navajo Civil Trespass Act. Any temporary access shall require not less than seven (7) business days’ notice in writing to the Navajo Nation Department of Justice, identifying the type of activity to be undertaken and the HRI employees or consultants desiring to access Section 8 via Section 9 or Section 17, to the extent such individuals’ identities are reasonably known by HRI at the time notice is given.
7. The Navajo Nation hereby releases HRI from any further liability whatsoever in any way relating to the alleged trespass that occurred in October 2011.
THE NAVAJO NATION | |
By: |
/s/ Dana Bobroff |
Its: |
Deputy Attorney General |
HYDRO RESOURCES, INC. | |
By: |
/s/ Donald C. Ewigleben |
Its: |
President and Chief Executive Officer |
4
Exhibit 99.1
Uranium Resources Comes to Agreement with Navajo Nation
GRANTS, N.M.--(BUSINESS WIRE)--July 31, 2012--Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), announced that its wholly-owned subsidiary Hydro Resources, Inc. (HRI) has come to agreement with the Navajo Nation regarding temporary access for its Churchrock Section 8 property. The Temporary Access Agreement (“Agreement”) is intended by both parties to settle the alleged trespass issue related to the Notice of Violation and Order to Comply with the Navajo Nation Civil Trespass Act received by the Company on April 5, 2012. Access provided under the Agreement is for regulatory requirements to include on site visits with the Nuclear Regulatory Commission, but does not allow for any construction activities or earth disturbances.
Reviewing the significance of the progress made to date in discussions with the Navajo Nation, Don Ewigleben, President and CEO of URI, noted, “We have been involved in extensive and meaningful conversations with members of the Navajo Nation and its government rather than taking the approach to litigate jurisdictional authority and believe this agreement is a solid first step toward helping address the legacy issues left behind by previous uranium mining, while enabling us to move forward with our project.”
Under the terms and for the duration of this agreement, HRI has agreed to the jurisdiction of the Navajo Nation. HRI also offered to complete remediation of any radioactive contamination on Sections 17 or 8 prior to commencing in situ leach recovery on Section 8.
Mr. Ewigleben added, “While there is much yet to be accomplished in order for us to advance our project forward, we believe the agreement we have reached with the Navajo Nation is of significance and indicates a willingness by both parties to work toward finding a mutually beneficial solution. We are currently developing cost estimates and timelines for the remediation. Given the many issues yet to be agreed upon and the need to determine a time line for the remediation, we are also revisiting our present schedule which has projected Churchrock Section 8 production commencing by the fourth quarter of 2013.
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. 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 an 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 drill hole logs, assay certificates, maps and technical reports. None of URI’s properties is currently in production.
URI’s strategy is to fully develop 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 assets 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 website 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.
CONTACT:
Investor Contact:
Kei Advisors LLC
Deborah K.
Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com
or
Media
Contact:
Mat Lueras, 505-269-8317
Vice President, Corporate
Development
mlueras@uraniumresources.com
or
Company
Contact:
Don Ewigleben, 972-219-3330
President & Chief
Executive Officer