Ur-Energy Inc. (NYSE:URG)(TSX:URE) (the “Company” or “Ur-Energy”) is pleased to announce that it has signed a second multi-year uranium sales agreement with a leading nuclear fuel company.
The new sales agreement calls for the annual delivery of 300,000 pounds of uranium concentrates (“U3O8”) over a five-year period beginning in 2024. Sales prices are anticipated to be profitable on a Company-wide, all-in cost basis and are escalated annually from the initial pricing in 2024. The agreement also provides that a 2029 commitment of 300,000 pounds may be agreed to by the parties no later than year-end 2026. The Company’s total sales quantity now under contract is 500,000 pounds U3O8 per year beginning in 2024, plus or minus a small flex.
The Company previously announced its initial multi-year agreement for sales of 200,000 pounds U3O8 annually beginning in 2023. Pursuant to the Company’s request, that previously announced sales agreement is conditioned on Ur‑Energy securing additional contractual commitments to support a development decision. (See Ur-Energy News Release August 8, 2022.) Ur-Energy continues in its ongoing discussions with other nuclear fuel companies with the objective of layering in sufficient additional term offtake contracts to incentivize a ramp-up of production at Lost Creek.
John Cash, the Company’s CEO, stated, “We greatly appreciate the faith being placed in Ur-Energy to supply uranium to some of the largest players in the global nuclear industry. We believe the confidence shown by these purchasers is based on our record of consistent, timely deliveries into our contractual commitments. We look forward to adding to our contract book and working with these and other purchasers in the future.”
In addition to our efforts to secure sales contracts with leading companies in the nuclear fuel industry, the Company awaits response from the U.S. Department of Energy (“DOE”) related to the Uranium Reserve bid proposal submitted by the Company. Assuming no further delays by DOE, we expect to learn the outcome of the bid process before year-end.
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