Ur-Energy (TSX:URE, NYSEMKT:URG) has closed a preciously announced US$34 million state bond loam with Sweetwater County in the State of Wyoming. The closing of the State Bond Loan has enabled the company to retire its debts with RMB Australia Holdings – which previously served as interim financings to complete construction at Lost Creek and bring the project to production.
Since the start of production in August, Ur-Energy has now commissied the first three header houses in Mine Unit 1 and all of the production circuits in the processing plant. The company has drummed and packaged its first dried yellowcake.
According to the company’s press release:
The State Bond Loan calls for payments of interest at a fixed rate of 5.75% per annum on a quarterly basis commencing January 1, 2014. The principal is payable in 28 quarterly installments which do not commence until January 1, 2015. The loan matures in October 2021. The State Bond Loan is secured by the assets of the Lost Creek Project. Closing and other fees and expenses for the State Bond Loan totaled approximately 2.3% of the loan amount.
President and CEO of Ur-Energy Wayne Heili said in a statement:
I am very pleased to announce the successful completion of this funding. It is a testament to the viability of the Lost Creek project that it can stand up to the State’s lengthy and rigorous due diligence process. Converting the Company’s debt instruments to the more favorable State Bond Loan provides a manageable debt service schedule that will serve the Company and its shareholders well. Ongoing operations at the Lost Creek Project will provide Ur-Energy with the opportunity to advance its Wyoming growth strategy.” Heili added, “I would like to thank theSweetwater County Commissioners for their demonstrated support of the Lost Creek Project as well as Governor Matt Mead, State Treasurer Mark Gordon and the Wyoming Business Council. Their determination to utilize this State program, which is funded by the State’s Permanent Mineral Trust Fund, for our Lost Creek uranium project demonstrates the current administration’s dedication to our State’s energy economy. As a productive part of that economy, Ur-Energy and its 75 Wyoming employees exemplify the type of project the Industrial Development Revenue Bond Program was designed for.