Canada’s Global Atomic has received a letter of intent (LoI) for the procurement of 2.1-million pounds of uranium oxide (U3O8) from the Dasa mine, in Niger, with a revenue potential of $110-million.
The LoI was received from a “major North American utility”.
Pricing is designed with two components to provide a blend of predictability and market exposure. The market component is linked to the uranium spot price index, subject to a floor and ceiling. The floor price ensures that the all-in sustaining costs of the Dasa operation are comfortably covered, and the ceiling allows the company to benefit from the improving market environment.
President and CEO Stephen Roman said in a statement this week that it was a significant milestone for Global Atomic and the Dasa operation.
“We are cognisant that contract awards for greenfield uranium projects are not made every day, and this is among the first in this market cycle. It reflects the faith the fuel buyers have in our project and the team, and we look forward to fostering this important relationship over the decades to come,” he said.
This follows the recent LoI from Export Development Canada for up to $75-million as the cornerstone to Dasa’s project financing.