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Anatolia Energy And Uranium Resources Finalise Merger

Uranium Resources Inc (URRE) has now completed the Anatolia Energy (ASX:AEK) merger, and a new chapter begins for the expanded entity.

Today (tonight U.S. time) the new shares exchanged for Anatolia shares will begin trading on Nasdaq under its existing trading symbol URRE, and on the ASX as CDI's under the new trading symbol URI.

New URI quoted options exchanged for Anatolia quoted options will trade on the ASX under the new trading symbol URIO.

With the merger now complete, and the integration of the two businesses well underway, this sets down the path to head towards uranium production.

Uranium Resources is actively progressing the high-grade, low-cost Temrezli ISR Project in Central Turkey, with the objective of commencing development during CY2016.

With a cash operating cost of US$16.89/lb and all-in operating costs of less US$30.17/lb indicated by the Pre-Feasibility Study, the project is capable of generating a robust free cash flow at the current uranium price.

Uranium Resources is targeting completion and reporting of a formal update to the Pre-Feasibility Study for Temrezli in Q1 2016.

The company has significant management and operational experience, as well as licensed ISR processing facilities to successfully implement its plan.

Temrezli plan

Uranium Resources plans to dismantle and ship its Rosita processing facility, near its Kingsville processing facility in South Texas, for the development of Temrezli.

This would reduce the initial capital costs for the construction of Temrezli by as much as US$8 million as part of the significant synergies totalling US$11 million in the proposed merger.

Rosita, which is capable of producing 800,000 pounds per annum, and was designed to double its capacity cost-effectively with some incremental capital expenditures, which would serve Temrezli's future growth.

Temrezli has Resources of 2.008 million tonnes at 1378 ppm U3O8 for 6.1 million pounds U3O8 (Measured); 2.178 million Tonnes at 1080 ppm U3O8 for 5.2 million pounds U3O8 (Indicated); 1.02 million Tonnes at 888 ppm U3O8 for 2.0 million pounds U3O8 (Inferred).

Analysis

With an enterprise value of less than US$45 million today, and owning one of the world's lowest cost uranium projects capable of entering development in the near-term, the new entity has positioned itself for a potential share price re-rating as it achieves a number of significant project milestones.

Uranium Resources said that it expects to continue with its demonstrated proactive merger and acquisition strategy to grow the company and re-align its portfolio pipeline towards the lowest-quartile cost projects.

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