Rio Algom weighing buyout of Uranium Resources

The company’s non-binding letter of intent with Rio Algom Mining is based on a share price of $2.55(US) cash per share for an estimated total consideration of $66 million(US).

Raymond Larson, president of Uranium Resources, said the negotiation of definitive agreements is continuing while Rio reviews the company’s business, properties, reserves and other relevant matters. The acquisition is subject to the execution of the definitive agreements and to the satisfactory conclusion of the review.

Uranium Resources produces uranium in South Texas, using low- cost in situ mining techniques. Rio Algom mines uranium from underground operations, and it also produces potash, copper, molybdenum, metallurgical coal and tin.

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