Uranium Energy extended its current $20 million senior secured credit facility to January 31, 2022 without any principal repayments required until maturity. Sprott Resource Lending Partnership was a lender on the facility.

Amir Adnani, Uranium Energy president and CEO, stated, “The company’s cash position of approximately $24.5 million, the credit facility extension and the royalty sales together evidence UEC’s strong balance sheet heading into 2019. The credit facility extension allows us to maximize working capital to advance our portfolio of low-cost and production-ready ISR projects in Texas and Wyoming in this critical time for the U.S. uranium industry. Additionally, the agreement with Uranium Royalty increases our ownership in this exciting venture to over one-third, adding a long-term asset to our uranium portfolio and balance sheet.”

The interest rate for the facility remains unchanged at 8%. In connection with the extension, the company issued a total of 1,180,328 common shares to the lenders as an extension fee.

As with Uranium Energy ‘s prior facility, should any principal be outstanding on each of November 30, 2019, 2020 and 2021, an annual fee will continue to be due in cash or stock, at the option of the company, at the rate of 7%, 6.5% and 6%, respectively, on each such date.

Uranium Energy is a U.S.-based uranium mining and exploration company with additional titanium and vanadium assets.