Sprott, CEF Capital Extend Uranium Energy Facility
Uranium Energy announced that the company, Sprott Resource Lending Partnership and CEF Capital Markets have agreed to extend the previously announced $20 million senior secured credit facility by deferring required principal payments by two years and extending the facility by two years to a full four years.
The company said it has drawn down a further $10.0 million, bringing the total principal amount outstanding under the credit facility extension to $20.0 million.
Amir Adnani, president and CEO, stated, “The $10 million drawdown combined with the credit facility extension have significantly strengthened UEC’s financial position in a manner which is non-dilutive to our shareholders. We will be utilizing this injection of growth capital to continue advancing our Texas hub-and-spoke production platform.”
CEF Chairman and CEO, Warren Gilman stated, “Our investment in UEC is based on the uniqueness and quality of their assets as well as the strength of its management team. We are pleased to continue our support of the Company as it positions itself as the leading uranium producer in the U.S.”
Narinder Nagra, president of Sprott Resource Lending, added, “We anticipate improving conditions in the uranium market driven by the continued growth of nuclear power globally and strong supply-demand fundamentals for uranium over the medium to long-term. We support UEC’s goal of becoming an important and strategic producer in the U.S., which despite being the world’s largest consumer of nuclear power, is presently heavily dependent on imported uranium supply to fuel its nuclear reactors.”