Uranium Resources, Inc. (NASDAQ: URRE) continues to build its asset portfolio with the addition of a lithium property in Nevada.
The company said that it acquired 4,600 acres of lithium-enriched brines in west-central Nevada in an area called Columbus Salt Marsh. Uranium Resources added that the target area is known as the Nina Project and it is located in a region that is well-known for its lithium mineralization.
Financial terms of the transaction weren’t disclosed, but Uranium Resources, Inc. (NASDAQ: URRE) didn’t fail to explain the rationale behind the lithium property acquisition. The company said that the acquisition is a testament to its commitment to expand its operations to other energy metals. As such, the management of Uranium Resources sees the lithium property acquisition as a move to diversify the company’s mineral portfolio.
Uranium Resources is already is in uranium business. According to CEO Christopher Jones, they are trying to maintain their uranium portfolio in readiness for anticipated rise in commodity prices.
Global energy demand
Uranium Resources, Inc. (NASDAQ: URRE)’s idea of adding more energy metals to its portfolio is motivated by the rapidly expanding global energy market. The signing of the Paris climate agreement is expected to boost demand for renewable energy and Uranium Resources is trying to position itself to take advantage of that demand.
With the growing threat of global warming, close to 200 countries commitment to transition to clean energy to power their economies under the Paris climate deal.
How Uranium Resources, Inc. (NASDAQ: URRE) fared in 2Q
Uranium Resources, Inc. (NASDAQ: URRE) impressed the market when it reported that its operating costs declined 15% in 2Q2016 relative to the same quarter last year. The company also updated on its fundraising efforts, saying that it managed to raise $3.9 million in the quarter.
Back in April, Uranium Resources reported that it entered into a stock purchase agreement with Aspire Capital Fund. The deal was to yield $12 million for the company and the management said at the time that the funds would go into the Temrezli Project.