Merge of Rio not on Uranium agenda

The proposed merger of Rio Algom (TSE) and in situ leaching specialist Uranium Resources (TSE) will not be discussed at Uranium’s Nov. 7 annual meeting in Dallas.

The Texas company has twice postponed the annual meeting to allow Rio Algom to evaluate the tax implications of US$6.40-per-share offer for all of Uranium’s outstanding shares.

With an 8% stake in Uranium and warrants to increase its interest to 25%, Rio Algom is also waiting for the U.S. company to sort out problems with in situ leaching technology utilized at the Rosita uranium mine in Texas. Although the proposed merger is still in doubt, Uranium has elected to go ahead with the annual meeting in November. However, the only matters scheduled to be voted on will be the election of directors and ratification of auditors for fiscal 1991.

“If the merger agreement with Rio Algom is ultimately to be consummated, a special shareholders’ meeting will be called and proxy materials distributed in connection with the meeting,” Uranium Resources said.

The merger proposal could be subject to Canadian tax rules because Uranium became a public company by merging with a Canadian shell company before being incorporated in the U.S.