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Uranium Energy Closes $20MM Facility With Sprott Resource Lending, Others

August 01, 2013, 07:10 AM
Filed Under: Energy

Uranium Energy Corp. announced that the company and certain of its U.S. subsidiaries have entered into a $20 million senior secured credit facility with Sprott Resource Lending Partnership and CEF (Capital Markets) Limited.

Under the credit facility the company has received initial funding in the amount of $10 million (the "Initial Advance"), with an additional $5 million available for draw-down by the company pursuant to a second advance, and a further additional $5 million available for draw-down by the company pursuant to a third advance, in each case in accordance with the terms of the credit agreement.

The company will use the proceeds of the credit facility for the development, operation and maintenance of its Hobson, Goliad and Palangana projects and for working capital purposes. The credit facility has a two-year term and bears interest at a rate of 8% per annum.  The undrawn standby credit facility will be subject to a standby fee of 4.00% per year.

The credit facility is secured by the company's Hobson plant and the Goliad mineral leases and in the event of the advance of the final $5 million would be required to be secured by the Palangana mineral leases.

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