Photo by: Bloombeg
PERTH (miningweekly.com) – Uranium developer Peninsula Energy has inked two new uranium concentrate sales and purchase agreements with major US power utilities.
Under the terms of the agreements, up to 1.93-million pounds of uranium would be delivered to the utilities by Peninsula, from 2016.
“We are very pleased to add two more contracts to Peninsula’s forward sale position, guaranteeing a significant portion of the company’s revenue stream at better than market [value] when production commences at the Lance project," said MD and CEO Gus Simpson.
The agreement contained prices that were consistent with the term contract prices reported by uranium industry commentators during the first half of this year, while other terms and conditions of the agreement reflected uranium industry norms.
The agreements were in addition to a sales agreement signed in December 2014, under which Peninsula would supply up to 912 500 lb of uranium to an undisclosed US power utility between 2016 and 2024.
Production would be sourced from the Lance project, in Wyoming, which had a resource of some 53.7-million pounds of uranium and which would have a minimum mine life of some 20 years. Production was expected to start in late 2015.
Under the first stage of development, Lance would produce between 500 000 lb and 700 000 lb of uranium oxide (U3O8) a year. Production would increase to 1.2-million pounds a year of U3O8 in the second stage of development.
Stage 3 development would further increase production to 2.3-million pounds a year of U3O8.