Tuesday, March 6, 2012

Big Uranium Story: URI Acquiring Neutron

For the big business story of the past few days, Albuquerqueans would have to go to the Cibola County Beacon (www.cibolabeacon.com/app/todaysfrontpage/page1.pdf) or New Mexico Business Weekly online (www.bizjournals.com/albuquerque/). Those bound to Albuquerque print media, well, tough luck.
Donald Jaramillo, Beacon managing editor, began the story this way.
“CIBOLA COUNTY - Uranium Resources, Inc., announced last week that it has entered into a merger agreement to acquire 100 percent of the equity capital of Neutron Energy, Inc. in a stock-for-stock transaction.
At the same time as the transaction, an affiliate of Resource Capital Fund V L.P. (“RCF”),
will provide $20 million that will be used to retire the majority of Neutron’s outstanding debt owed to RMB Australia Holdings Limited (“RMB”) in exchange for URI common stock.”
The combination brings together two of the bigger players in the nascent but struggling reappearance of uranium mining in New Mexico.
The Beacon story continued, “Neutron is a private uranium exploration and development company with significant assets located in the Grants Mineral Belt of New Mexico, including the Cebolleta and Juan Tafoya projects that include 10,814 acres. The Cebolleta property
contains 6.68 million tons of mineralized material while the Juan Tafoya property contains 3.81 million tons. These properties are located on private lands and are planned to be mined using conventional techniques.
Matt Lueras, URI vice president, said, “The merger increases our presence in Cibola County. Now we have direct interest.” Although all of URIs mining interests were outside the county before the merger, the company regularly met with officials in Grants.”
There is much more. You will have to check the websites.

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