Might Resource Capital Funds help fund the project cap-ex in Turkey?
Resource Capital Funds has stated that it will support our merger and participated with us in the due diligence review of Anatolia. RCF also indicated it will evaluate providing project finance for the Temrezli Project in Turkey which I believe speaks volumes as to the quality of that project.
Roughly what uranium price is required and how much capital and time to get into production in the U.S.?
Before the proposed plan to relocate one of our two processing plants, Rosita to Temrezli, we estimated all-in costs in the low $40s/lb to restart Rosita or Kingsville Dome. We believe these costs are at a similar level to other ISR production in Texas. We have two long-term sales contracts for 5 million pounds with no specified time delivery, which average a price just above the spot price. We need an increase in prices to provide a 10% margin for safety. It would take us about six-nine months to restart initial production in South Texas.
For my final question, are there misconceptions about Uranium Resources Inc. or Anatolia that you would like to address?
URI was founded in 1977 and has produced 8 million pounds from ISR operations in Texas. So, we really are an old name with a new story. This combination of Anatolia and URI affirms that the new story. Temrezli enjoys established infrastructure of power, roads and water. There will soon be high-speed rail service nearby. I saw Turkey’s rapid growth first hand when I was there in April.
Turkey has a forward-thinking energy policy to develop energy independence, including nuclear power generation with construction underway of the country’s first nuclear power plant.
We have transformed URI with this proposed merger to pull forward production at one of the best uranium deposits in the world.
Over the past 2.5 years, we have made great strides:
– We expect to close the pending merger with Anatolia this fall and to fast track Temrezli to production.
– Doing more for less, we reduced our cash expenditures and ongoing overhead from $17 million in 2012 to $9 million (not including the proposed merger) in 2015, even while expanding the scope of work.
– We completed Phase one drilling on Butler Ranch and Alta Mesa Este in the first half of 2015 showing an extension of the mineralized zone at Butler Ranch.
– We delivered three NI 43-101-compliant reports for the Roca Honda, Juan Tafoya and Cebolleta projects in New Mexico.
If one is looking for a growth story, and exposure to a rebound in uranium prices, I urge readers to look at Uranium Resources, Inc. (NASDAQ:URRE). We believe the proposed merger with Anatolia and prospective synergies would make us a meaningful mid-tier uranium company. Please review our corporate presentation for more information. Note that our presentation specifically addresses the attributes of the proposed merger. Readers are encouraged to also read more about Temrezli on Anatolia’s website.
I have no prior or existing relationship with Anatolia Energy, AEK (Australian listed). I do not own shares of AEK at this time.
Uranium Resources Inc. (Ticker: URRE) is a speculative, small cap company listed on the U.S. markets. An investment in Uranium Resources is not appropriate for everyone. Readers and investors are encouraged to do their own due diligence before buying or selling stocks, especially risky small caps. Due diligence should include consulting with your own investment advisor. The author, Peter Epstein, owns no shares of Uranium Resources. Mr. Epstein is not a registered financial advisor. Readers should take this fact into careful consideration.
