Junior uranium mining company Ur-Energy Inc. today announced it has secured its third agreement to supply uranium produced at its wholly owned Lost Creek Project. This multi-year agreement marks the achievement of the company’s strategic product marketing strategy developed under an arrangement with Jim Cornell of NuCore Energy.
Ur-Energy’s marketing objective includes the commitment of a pre-determined portion of the forecast uranium production from Lost Creek into term sales agreements with U.S. based nuclear utilities.
The agreement calls for the total delivery of 100,000 pounds of uranium concentrate per year throughout the range of the agreement, with delivery prices in the low $60 per pound range. The company said that securing this product pricing supports its development plans for the project.
“Ur-Energy recognizes that term contract pricing has historically exceeded the pricing available in the uranium spot market. One leading source for uranium market information currently reports a 20% premium for term contracts over the current uranium spot price. For this reason, favorable term delivery contracts are an essential component of a sound marketing plan,” Cornell stated.
Ur-Energy has established a series of various projects to strengthen its position in the market.
“We are pleased that our efforts to work closely with North American utilities have resulted in several valuable contracts. Adding this marketing component to our collection of accomplishments in project financing, permitting and licensing, resource development, and project design establishes a solid foundation for the future of Ur-Energy and the Lost Creek Project,” Ur-Energy CEO Wayne Heili stated.
Production from the Lost Creek project is slated to begin in the second quarter of 2013 and increase production to nearly 1 million pounds per year in 2014 and thereafter.
For more information visit www.ur-energy.com
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