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Uranium Resources, Inc., today provided an update on the Company's financial position as of the year ended December 31, 2009 and on its strategies and outlook for 2010 and beyond.
Continued focus on the Company's cash preservation program is a priority. URI's Board of Directors recently approved a revised strategic plan which emphasizes the cash preservation program and addresses the Company's future cash needs, as well as its strategic options for unlocking potential value for shareholders by utilizing its current assets and by evaluating possible regional and structural synergies.
Key operational points of the plan for its Texas properties are as follows:
* Prepare to be in a position to return to production in Texas should the price of uranium return to a level sufficient to generate positive cash flow.
* Analyze exploration potential in South Texas and enhance exploration capabilities.
* Maintain restoration activities in South Texas in accordance with existing agreements and requirements.
* Analyze synergistic opportunities and asset monetization prospects in Texas.
Don Ewigleben, President and Chief Executive Officer of Uranium Resources, commented, "It is vital that URI is positioned in Texas to take advantage of any sustained rebound in the price of uranium by returning to production as quickly as possible, and we have developed a concrete action plan to ensure a smooth return to production when the time comes."
In New Mexico, the Company holds 101.4 million pounds of in-place mineralized uranium material, an NRC license to produce up to 1 million pounds of uranium and 183,000 acres of uranium mineral holdings with strong exploration potential. It has a current permit to drill 10 uranium exploratory holes on property in the Ambrosia Lake District. URI has approximately one million pounds of in-place mineralized uranium material on this property, and the exploratory holes will be used to determine if the uranium is amenable to the in-situ recovery (ISR) method of extraction. URI is currently evaluating drilling conditions and costs of the project.
Mr. Ewigleben noted, "In New Mexico, the extensive uranium assets we have enable us to consider many options to advance our projects. We are in active discussions with others in the region that also hold assets, as well as with entities that would benefit from the production of the uranium. And, we continue our communication efforts with the local communities, State and local governments and the Navajo Nation in New Mexico to address legacy issues while continuing education efforts on the safety of today's uranium mining practices."
"The recent ruling by the Tenth Circuit Court of Appeals upholding our NRC license in all respects was extremely important for our progress and we are awaiting the outcome of the Tenth Circuit en banc review of the Indian country issue. We intend to continue our discussions with all stakeholders to find a means by which all will benefit and further litigation can be avoided and we continue to believe there will be a positive resolution to this matter. We are beginning to see progress in this area and continue to believe uranium mining will be part of the state's future."
* In January 2010, the Board appointed Robert (Bob) Gallagher a director of the Company. Mr. Gallagher is the former President of the New Mexico Oil & Gas Association (NMOGA) and has vast experience in the public and private sectors.
* On January 12, 2010, oral arguments were presented to the United States Court of Appeals for the Tenth Circuit en banc to review the April 17, 2009 ruling by a three-judge panel of the Court that jurisdiction to issue a underground injection control (UIC) permit rested with the U.S. Environmental Protection Agency because URI's Section 8 fee land is Indian country. The Company is awaiting a decision by the en banc court.
* In October 2009, the New Mexico Mining and Minerals Division approved the Company's request for a renewal of the Minimal Impact Exploration Permit Application on its Section 13 in-situ recovery (ISR) exploration project at Ambrosia Lake. The permit, originally approved in November 2008, allows URI to drill up to 10 holes for the purpose of extracting core samples to evaluate the suitability of the property for ISR mining. The renewed permit is valid through November 2010.
* In September 2009, the Board appointed Don Ewigleben President, CEO, COO and a director. Mr. Ewigleben has over 30 years of leadership and mining experience.
* In June 2009, URI's two remaining operating wellfields at Kingsville Dome in south Texas were fully depleted. The Company has not developed any new wellfields since its decision in the latter half of 2008 to suspend production in response to weakness in the uranium pricing market. The Company is currently focused on reclamation activities in Texas.
* In March 2009, URI received notification from Itochu Corporation terminating URI's joint venture with Itochu to develop our Churchrock property in New Mexico. With the termination, URI now retains 100% ownership of the 18.6 million pounds of in place mineralized uranium material at Churchrock, subject to applicable royalties.