U.S.REPORT NEWS IN BRIEF Rio Algom acquires properties

A unit of Rio Algom (TSE) recently agreed to purchase all of the outstanding common shares of Uranium Resources (TSE) at US$6.40 per share.

The major company already holds about 8% of Uranium Resources’ outstanding shares, and a warrant to acquire an additional 16.5% share interest on a fully diluted basis. It will cost about US$41 million for Rio Algom to acquire the shares it does not already own.

Uranium Resources is engaged in the mining of uranium in South Texas using in situ leach technology and owns extensive uranium properties in Texas and New Mexico.

Uranium Resources President Raymond Larson said the cash merger transaction is viewed as “very favorable” in light of uncertain uranium market conditions.

Rio Algom’s U.S. subsidiary owns uranium mining operations near Grants, New Mexico, and has extensive in situ leach uranium properties in New Mexico and Wyoming.

Ray Ballmer, chief executive officer of Rio Algom, said that acquisition and merger would result in a combined entity with total in situ leach uranium reserves in excess of 65 million lb.