(Kitco News) - On Friday, Peninsula Energy (ASX: PEN, OTCQB: PENMF) along with its wholly owned subsidiary Strata Energy announced the award of a supply contract between Strata and the US Department of Energy (DOE) to provide domestically produced uranium concentrates to the US$75 million uranium reserve established by Congress in 2020.
In its press release, Peninsula said that under the supply award, Strata is to supply 300,000 pounds of US origin U3O8 for the uranium reserve, adding that the delivery will be satisfied with US origin material currently held in the accounts of Strata.
Importantly, the company noted that the agreed pricing is above current reported spot and term pricing benchmarks, reflecting the scarcity of US origin materials in the uranium market.
“This transaction with the DOE is highly supportive of our objective to become a long-term reliable uranium producer. We are also pleased to support the DOE’s efforts aimed at revitalizing the US nuclear fuel cycle,” said Peninsula Managing Director and CEO Wayne Heili.
Peninsula Energy is a uranium mining company which has made the decision to restart its 100% owned Lance projects in Wyoming, USA.
The company produced uranium at its Lance projects in Wyoming from 2015 through 2019 and is now in the process of completing the final preparations to resume production activities at Lance in 1Q CY2023.
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