(Kitco News) - Uranium miner Ur-Energy (NYSE: URG) (TSX: URE) announced today that it has signed a second multi-year uranium sales agreement with a leading nuclear fuel company.
The company said that 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, adding that 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 company noted that its total sales quantity now under contract is 500,000 pounds U3O8 per year beginning in 2024, plus or minus a small flex.
Importantly, Ur-Energy said it 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.
CEO John Cash 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."
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. The company indicated that it has produced, packaged, and shipped approximately 2.6 million pounds U3O8 from Lost Creek since the commencement of operations.
In addition, Ur-Energy said it has all major permits and authorizations to begin construction at Shirley Basin, the company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek.
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