This news release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated August 18, 2021 to
its short form base shelf prospectus dated June 16, 2021.
VANCOUVER, BC, Dec. 2, 2021 /CNW/ - Uranium Royalty Corp.
(NASDAQ: UROY) (TSXV: URC) is pleased to announce that it has
entered into a Supply Stream Agreement with CGN Global Uranium
Limited to purchase 500,000 pounds of U3O8 from CGN delivered at
Cameco from 2023 through 2025 at a weighted average price of
$47.71 per pound (fixed prices and
delivery dates). 300,000 pounds of U3O8 will be delivered on
October 20, 2023, and additional
100,000 pounds of U308 each to be delivered on June 14, 2024 and April
2, 2025.
CGN Global (subsidiary of CGN Mining Company Limited) is the
overseas nuclear fuel business platform of China General Nuclear
Power Group (CGN), the world's third largest, and China's biggest nuclear power operator with 25
units in operation (28.26GWe installed capacity). CGN is also one
of the world's largest nuclear power constructors with 6 units
(7GWe installed capacity) under construction and has uranium
production ownership interests in the Husab Mine in Namibia and the Ortalyk, Irkol and Semizbay
Operations in Kazakhstan.
Scott Melbye, CEO, commented: "In
addition to attractive pricing, this strategic supply stream will
provide URC with access to physical uranium in a timeframe,
2023-2025, where industry analysts forecast large 45-50 million
pound annual supply deficits between production and reactor
requirements at a time utility procurement volumes are expected to
return to higher levels. As payment is made at the time of
delivery, it requires no cash outlay today."
Mr. Melbye continued: "This transaction establishes another key
relationship with one of the world's leading nuclear energy
companies, which combined with our existing Kazatomprom supply
options through Yellow Cake Plc, positions URC with access to
world-class, flexible, uranium supplies."
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is the world's only uranium-focused
royalty and streaming company and the only pure-play uranium listed
company on the Nasdaq. URC provides investors with uranium
commodity price exposure through strategic acquisitions in uranium
interests, including royalties, streams, debt and equity in uranium
companies, as well as through holdings of physical uranium. The
Company is well positioned as a capital provider to an industry
needing massive investments in global productive capacity to meet
the growing need for uranium as fuel for carbon-free nuclear
energy. URC has deep industry knowledge and expertise to
identify and evaluate investment opportunities in the uranium
industry. The Company's management and the Board include
individuals with decades of combined experience in the uranium and
nuclear energy sectors, including specific expertise in mine
finance, project identification and evaluation, mine development
and uranium sales and trading.
Forward Looking Information
Certain statements in this news release may constitute
"forward-looking information", including those regarding the
Company's expectations regarding uranium supply, demand and markets
generally and the benefits of the uranium purchase arrangements
described herein. Forward-looking information includes statements
that address or discuss activities, events or developments that the
Company expects or anticipates may occur in the future. When used
in this news release, words such as "estimates", "expects",
"plans", "anticipates", "will", "believes", "intends" "should",
"could", "may" and other similar terminology are intended to
identify such forward-looking information. Statements constituting
forward-looking information reflect the current expectations and
beliefs of the Company's management. These statements involve
significant uncertainties, known and unknown risks, uncertainties
and other factors and, therefore, actual results, performance or
achievements of the Company and its industry may be materially
different from those implied by such forward-looking statements.
They should not be read as a guarantee of future performance or
results, and will not necessarily be an accurate indication of
whether or not such results will be achieved. A number of factors
could cause actual results to differ materially from such
forward-looking information, including, without limitation, risks
inherent to royalty companies, uranium price volatility,
fluctuations in uranium demand; risks related to the
operators of the projects underlying the Company's existing and
proposed interests and those other risks described in filings with
Canadian securities regulators and the U.S. Securities and Exchange
Commission. These risks, as well as others, could cause actual
results and events to vary significantly. Accordingly, readers
should exercise caution in relying upon forward-looking information
and the Company undertakes no obligation to publicly revise them to
reflect subsequent events or circumstances, except as required by
law.
Neither the TSX Venture Exchange (the "TSX-V") nor its
Regulation Services Provider (as that term is defined in policies
of the TSX-V) accepts responsibility for the adequacy or accuracy
of this release.
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SOURCE Uranium Royalty Corp.