Source: Uranium Resources, Inc.
Uranium Resources, Inc. (NASDAQ:URRE) (URI) announced that it has completed an agreement to explore 53,500 acres in Kenedy County, Texas, for three years, with an option to lease the acreage for uranium production. The lease would have a primary term of eight years after lease commencement.
Don Ewigleben, President and CEO of URI, commented, “This acquisition marks an important next step in our strategy to build our resource base in
The property is located within the prolific
The lease option agreement requires a minimum exploration obligation of one hundred exploration wells or $1.0 million investment in the first year, an additional two hundred exploration wells or $1.5 million investment in the second year and, in the third year, an additional two hundred exploration wells or $2.0 million investment. Investment or drilling in excess of the minimum requirement in any year counts toward the following year’s requirements.
Mr. Ewigleben continued, “Now that we have secured this lease, our attention is on completing a final exploration agreement with Cameco Resources so that we can begin the evaluation of the property for the presence of an economically recoverable uranium ore body.”
URI announced on November 4, 2010, that it signed a non-binding letter of intent with Cameco Resources, a subsidiary of Cameco (NYSE:CCJ), for a three-phase exploration program that will be funded by Cameco Resources with an option for a production joint venture.