PERTH (miningweekly.com) – Uranium miner Peninsula Energy has entered into a sales agreement with a US power utility to supply up to 912 500 lb of uranium between 2016 and 2024.
Peninsula said on Wednesday that the agreement contained a base price that was consistent with the current term contract price reported by industry commentators and escalation would be applied to the base price on a quarterly basis over the term of the contract, starting in the first quarter of 2015.
“We are very pleased to secure this additional sales agreement. Combined with the existing 2011 sale and purchase contract, this contract provides Peninsula with additional revenue security as we bring the Lance projects into production in 2015,” said executive chairperson Gus Simpson.
The Lance project, in Wyoming, would have a minimum mine life of some 20 years and has a resource of some 53.7-million pounds of uranium.