Quarterly report pursuant to Section 13 or 15(d)

Liquidity Risk

Liquidity Risk
9 Months Ended
Sep. 30, 2014
Liquidity Risk [Abstract]  
Liquidity Risk

2.Liquidity Risk


The Company has financed its operations from its inception primarily through the issuance of equity securities and debt instruments. Construction and development of the Lost Creek Project commenced in October 2012 after receiving the Record of Decision from the United States Department of the Interior Bureau of Land Management (“BLM”).  Production began in August 2013 after receiving final operational clearance from the United States Nuclear Regulatory Commission (“NRC”). The Company made its first deliveries and related sales in December 2013.


On October 23, 2013, the Company closed a $34.0 million Sweetwater County, State of Wyoming, Taxable Industrial Development Revenue Bond financing program (“State Bond Loan”)(see note 12). The repayment terms of the State Bond Loan call for interest only payments for the first year of the loan.  Commencing January 1, 2015, the loan calls for quarterly principal and interest payments of $1,483,601.


On March 14, 2014, the Company drew down an additional $1.5 million on its RMB Australia Holdings (RMBAH) First Loan Facility (see note 12).  On September 19, 2014, the Company drew down an additional $3.5 million on the First Loan Facility (see note 12).


In addition to normal operating expenses, the Company has commitments to fund additional surety performance bonds in the amount of $2.1 million (note 19) prior to year end.  It also anticipates spending an additional $1.2 million to complete a disposal well which was begun during the current quarter (note 19).


Based upon the Company’s current working capital balances and the expected timing of product sales, it is possible that additional funding might be sought. Although the Company has been successful in raising debt and equity financing in the past, there can be no guarantee that such funding will be available in the future.