Uranium Resources Inc. higher following acquisition
Shares of Uranium Resources Inc. (Nasdaq: URRE) are higher following news before the opening that the company engaged in developing and mining uranium properties has purchased a similar privately held firm.
Lewisville, Texas-based Uranium Resources, which owns uranium properties in Texas and New Mexico, has agreed to buy a uranium mining company and a mill license from BHP Billiton Ltd. (NYSE: BHP) for about $126.5 million in cash. The purchase price includes $110 million for Rio Algom Mining LLC, which has a property with 20 million pounds of U308 uranium ore in New Mexico, and $16.5 million paid to regulators for a license to build a conventional uranium mill.
“The purchase of Rio Algom provides one of the key assets we need to achieve our strategic goal to produce 10 million pounds of U3O8 per year by 2014,” said president and CEO Dave Clark in a statement. He added that production from the new mill could begin within four to five years.
The deal is expected to close before June 2008.
At 11:18 a.m. ET, shares of Uranium Resources (URRE) had advanced $0.84, or 9%, to $9.87. The 52-week high of $12 was reached on June 4. The 52-week low of $2.25 was set on Oct. 12.
