Don’t Miss This Surge on Uranium Resources Inc (NASDAQ:URRE) Shares!

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Uranium Resources Inc (NASDAQ:URRE) shares jumped 41.78% to $3.19 and an additional 5.64% in after-hours trading to $3.37. The company has a market cap of $54.89 million at 13.38 million shares outstanding. Share prices have been trading in a 52-week range of $0.97 to $6.00.

Last week, Uranium Resources Inc announced that it as closed the sale of its Churchrock and Crownpoint properties in New Mexico to Laramide Resources Ltd. at $12.5M comprised of $2.5 million cash, $500,000 of LAM common stock and warrants, a promissory note in the amount of $5.0 million, half of which LAM may satisfy through issuance of its common stock, and a retained NSR royalty on the Properties valued at $4.5 million.

“The sale of our Churchrock and Crownpoint properties to Laramide represents URI’s third asset monetization transaction in the last three years. We remain focused on improving the alignment of our uranium portfolio with our production experience and expertise in in-situ recovery of uranium, targeting uranium operations that fit into the lowest quartile of operating costs.  We will use the proceeds received from this sale to fund the expansion of our energy metals strategy, which includes developing our new lithium business, while maintaining optionality on the future rising uranium price,” noted Uranium Resources Inc President and CEO Christopher Jones.

Following this announcement, uranium prices jumped in the global market when top producer Kazakhstan declared that they will slash output by 10% this year due to poor market conditions. This would significantly put a dent on supply, thereby leading to higher prices.

“These strategic [uranium] assets are far more valuable to our shareholders and stakeholders being left in the ground for the time being, rather than adding to the current oversupply situation,” Kazatomprom Chairman Askar Zhumagaliyev said in the statement. Kazatomprom is a state-owned uranium company. According to analysts, this reduction in output could represent a significant floor for the commodity and that price could continue to climb in the near term.

Uranium Resources Inc is a uranium exploration, development and production company. It has approximately 190,000 acres of mineral holdings in the prolific Grants Mineral Belt of the State of New Mexico and approximately 14,000 acres in the South Texas uranium province. Its uranium exploration and development activities are focused principally in the United States and the Republic of Turkey.

In particular, Uranium Resources Inc properties include Temrezli Project, Kingsville Dome Project, Rosita Project, Vasquez Project, Butler Ranch Project, Churchrock Project, Crownpoint Project, Cebolleta Project and Juan Tafoya Project. The Kingsville Dome property is located in Kleberg County. The Juan Tafoya Project is located approximately 45 miles west-northwest of Albuquerque. The Cebolleta project is located in west-central New Mexico. The Sejita Dome exploration project is located in southern Duval County, Texas. The Vasquez project is located in southwestern Duval County, Texas.

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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.