Uranium Royalty Corp. [NASDAQ: UROY] disclosed that it has inked a Supply Stream Agreement with CGN Global Uranium Limited to acquire 500,000 pounds of U3O8 from CGN delivered at Cameco from 2023 through 2025 at a weighted average price of $47.71 per pound. These have fixed prices and delivery dates.
The company also confirmed that 300,000 pounds of U3O8 will be shipped on October 20, 2023, and additional 100,000 pounds of U308 each are scheduled to be delivered on June 14, 2024, and April 2, 2025. CGN Global which is the division of CGN Mining Company Limited is the foreign nuclear fuel business platform of China General Nuclear Power Group (CGN). CGN has earned an impeccable reputation as the world’s third-largest, and China’s biggest nuclear power operator with 25 units in operation.
In addition, CGN has also gained recognition as one of the world’s largest nuclear power constructors with 6 units. Its units have 7GWe installed capacity. The units are under construction and have uranium production ownership interests in the Husab Mine in Namibia and the Ortalyk, Irkol, and Semizbay Operations in Kazakhstan.
Moreover, the supply stream agreement creates the basis for another key relationship with one of the world’s leading nuclear energy companies, which shared with its existing Kazatomprom supply options through Yellow Cake Plc, positions URC with access to world-class, flexible, uranium supplies.
Furthermore, this strategic supply stream will offer URC access to physical uranium in a timeframe, 2023-2025. The industry analysts predict large 45–50-million-pound yearly supply deficits between production and reactor obligations at a time utility procurement volumes are probable to return to higher levels. As payment is made at the time of delivery, it needs no cash expense today.