PERTH (miningweekly.com) – Uranium developer Peninsula Energy on Friday announced that its subsidiary Strata Energy had been awarded a supply contract from the US Department of Energy (DOE) to provide domestically produced uranium concentrates to the $75-million Uranium Reserve.
Under the supply award, Strata is to supply 300 000 lb of US-origin uranium pentoxide (U3O8) for the Uranium Reserve.
Strata was a qualified supplier under the terms of the solicitation and provided an initial offer to the DOE in early August 2022. The DOE notified the successful suppliers on December 15.
The delivery will be satisfied with US origin material currently held in the accounts of Strata.
Peninsula told shareholders on Friday that the agreed pricing is above current reported spot and term pricing benchmarks, reflecting the scarcity of US origin materials in the uranium market.
“We are very happy to secure this agreement to supply a portion of the material needed for the US Uranium Reserve,” Peninsula MD and CEO Wayne Heili said.
“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 the first quarter of 2023. 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.”