Highlights
- Uranium Royalty Corp (URC) previously announced on March 30, 2021 the initial exercise of its option
to purchase US$10 million of physical
uranium, secured under its strategic and foundational investment in
the 2018 IPO of Yellow Cake plc (YCA);
- URC has now taken delivery of 348,068 pounds of
U3O8; and
- Together with our recently announced proposed acquisitions of
royalty interests in the McArthur River and Cigar Lake mines, URC
is ideally positioned to benefit from improving uranium
prices.
VANCOUVER, BC, April 29, 2021 /PRNewswire/ - Uranium
Royalty Corp. (NASDAQ: UROY) (TSXV: URC) ("URC" or the
"Company") is pleased to confirm the completion of its previously
announced acquisition of 348,068 pounds of
U3O8 pursuant to its existing strategic
arrangements with Yellow Cake plc ("Yellow Cake") at a price of
US$28.73 per pound. The purchased
physical uranium is being held in URC's account at the Fuel
Services facilities of Cameco Corporation in Ontario, Canada.
Scott Melbye, Chief Executive
Officer of URC, commented: "We are pleased to confirm the
acquisition and delivery of uranium into our holding account. This
purchase is in line with our goal of gaining exposure to uranium
prices through sector-focused investments and we believe that it
clearly demonstrates the value of our strategic Yellow Cake
investment."
Mr. Melbye continued: "The addition of this direct physical
uranium interest further diversifies our unique uranium-focused
portfolio and adds a valuable asset to our balance sheet. Together
with our recently announced proposed acquisitions of royalty
interests in the McArthur River and Cigar Lake mines, we believe we
are uniquely positioned to benefit from improving uranium
prices."
The acquisition was completed pursuant to the option granted to
the Company in connection with its 2018 IPO investment in Yellow
Cake. Pursuant to the option, the Company may acquire between
US$2.5 million and US$10 million of U3O8 per
year from Yellow Cake under its supply agreement that will expire
on January 1, 2028, up to a maximum
aggregate amount of US$31.25 million
worth of U3O8. Yellow Cake is a listed
uranium holding company that purchases U3O8
through the spot market and a long-term supply agreement with
National Atomic Company Kazatomprom JSC.
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is a pure-play uranium royalty
company focused on gaining exposure to uranium prices by making
strategic investments in uranium interests, including royalties,
streams, debt and equity investments in uranium companies, as well
as through holdings of physical uranium. The Company recognizes the
inherent cyclicality of valuations based on uranium prices,
including the impact of such cyclicality on the availability of
capital within the uranium sector and the current historically low
uranium pricing environment. URC intends to execute on its strategy
by leveraging the deep industry knowledge and expertise of its
management team and the Board to identify and evaluate investment
opportunities in the uranium industry. The Company's management and
the Board include individuals with decades of combined experience
in the uranium and nuclear energy sectors, including specific
expertise in mine finance, project identification and evaluation,
mine development and uranium sales and trading.
Forward Looking Statements
Certain statements in this news release may constitute
"forward-looking statements", including those regarding uranium
markets, proposed royalty acquisitions and the Company's
acquisition strategy. Forward-looking statements are statements
that address or discuss activities, events or developments that the
Company expects or anticipates may occur in the future. When used
in this news release, words such as "estimates", "expects",
"plans", "anticipates", "will", "believes", "intends" "should",
"could", "may" and other similar terminology are intended to
identify such forward-looking statements. Forward-looking
statements reflect the current expectations and beliefs of the
Company's management. These statements involve significant
uncertainties, known and unknown risks, uncertainties and other
factors and, therefore, actual results, performance or achievements
of the Company and its industry may be materially different from
those implied by such forward-looking statements. They should not
be read as a guarantee of future performance or results, and will
not necessarily be an accurate indication of whether or not such
results will be achieved. A number of factors could cause actual
results to differ materially from such forward-looking statements,
including, without limitation, any inability to satisfy conditions
to completion of the Company's recently announced royalty
acquisitions or to complete any of the transactions as contemplated
or at all, any ability for the Company to obtain necessary
financing on acceptable terms or at all, risks inherent to royalty
companies, uranium price volatility, risks related to the operators
of the projects underlying the Company's existing and proposed
interests and those other risks described in the Annual Information
Form and other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission, which could cause actual
results and events to vary significantly. Accordingly, readers
should exercise caution in relying upon forward-looking statements
and the Company undertakes no obligation to publicly revise them to
reflect subsequent events or circumstances, except as required by
law.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
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SOURCE Uranium Royalty Corp.