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Neutron Energy approves Uranium Resources offer

LEWISVILLE, Texas (AP) -- Shareholders of Neutron Energy have approved its buyout by Uranium Resources, the company said Friday.

Neutron Energy Inc. is a privately held company with uranium exploration and development in New Mexico, and assets in South Dakota and Wyoming. Neutron Energy has 206,600 acres of holdings.

Uranium said 61.5 percent of all outstanding Neutron shares were voted in favor of the deal at a meeting of company shareholders. Of the votes cast at the meeting, 99.9 percent were in favor of the sale. Uranium Resources Inc. announced in March that it was buying Neutron in an all-stock deal.

Uranium Resources shareholders will have a special meeting Wednesday to approve a plan to issue 37 million shares, resulting in $38.1 million in consideration. Resource Capital Fund agreed to provide $20 million that will be used to retire some of Neutron's debt, and also agreed to buy $10 million in Uranium Resources stock. Uranium Resources can get another $5 million from Resource Capital when the deal closes.

Assuming Uranium Resources shareholders approve, the deal should close Aug. 31.

The deal price is based on the closing price of Uranium Resources shares on Feb. 24, which was $1.03. The stock closed at 50 cents on Thursday.