Uranium Resource said major shareholder and strategic investor Estes Ltd has agreed to extend the terms of its loan facilities dated 15 March 2013 and 18 March 2014 to 31 December 2016.
These two loans total $1.3 million and are fully drawn down.
In addition the Company said Estes has agreed to increase the loan facility dated 19 February 2015 to US$500,000 and the term has been extended to 31 January 2017.
The Company continues to investigate options for the development of the Mtonya project in Tanzania and is also considering projects in other commodities and jurisdictions.
As a substantial shareholder, Estes is a related party of the Company and the increase of the loan facility dated 19 February 2015 constitutes a related party transaction as defined by Rule 13 of the AIM Rules for Companies.
The independent directors, being Alex Gostevskikh, Andrew Lewis, James Pratt, and Mark Purits, having consulted with Northland Capital Partners Limited, the Company's nominated adviser, consider that the revised terms of this loan facility are fair and reasonable in so far as the Company's shareholders are concerned.