Uranium Royalty Corp. Acquires Additional Royalty on Lance Uranium Project in Wyoming, USA

This press release constitutes a “designated press release” for the purposes of the Company’s prospectus supplement dated August 18, 2021to its short form base shelf prospectus dated June 16, 2021.

VANCOUVER, BC, April 1, 2022 /PRNewswire/ – Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) (“RCU“or the”Company“) is pleased to announce that it has acquired an additional 1% gross revenue royalty from the Lance In-Situ Recovery (“ISR”) uranium mine in Wyoming, United States operated by Strata Energy Inc. (“Strata”), a wholly owned subsidiary of Peninsula Minerals Limited (“Peninsula”).

Strong points

  • Short-term production potential: The Lance ISR uranium mine is a fully licensed mine, and Peninsula is currently undertaking an updated feasibility study for a full restart of ISR production. Production at the mine was halted in 2019 when the operator began a transition to a low pH mining method, but the project produced uranium in limited quantities during the test mining phase.
  • Additional exposure to Uranium production in the United States: Provides URC with additional exposure to potential US-derived uranium production.
  • The royalty is a royalty interest of 1% of gross revenue: The royalty covers the entire currently licensed project area and extends URC’s existing 4% gross revenue royalty on portions of the Lance project. It applies to all uranium and related ores in the project area.

The royalty was acquired from an existing royalty holder and the consideration paid by the Company was $1.25 million in liquid.

Scott MelbyePresident and CEO of URC, said, “URC could not be happier with the addition of this full, short-term royalty on the Lance project. We have great confidence in Peninsula’s management and technical teams to be able to bring this competitive edge into full production as an early mover, taking advantage of improving uranium markets. We look forward to Peninsula’s recently announced updated feasibility study.

Mr. Melbye continued, “As the global nuclear fuel industry reassesses strategic and geopolitical risks, the value of U.S. ISR uranium production in a resource-friendly state like Wyoming cannot be underestimated. Therefore, we believe that uranium projects in North America which are not only fully licensed and authorized, but free from any control or influence of Russia and Chinawill attract higher premiums due to the current geopolitical climate.”

The project

The Lance Project is an ISR uranium project located on the northeast flank of the Powder River Basin at Wyoming, United States and includes approximately 38,416 acres of mixed surface and mining rights, including private access agreements as well as state and federal mining concessions. In its annual report for the year ended September 31, 2021Peninsula has disclosed a JORC resource consisting of measured and indicated resources of 15.8 Mlb at an average grade of 494 ppm U3O8 and inferred resources of 37.8 Mlbs at an average grade of 474 ppm U3O8 for the Lance project. The estimate was released on December 31, 2020.

The project was licensed and constructed by Strata and began commercial operations in 2015. From September to December 2018, Peninsula made a series of announcements outlining the proposed transition to low pH mining, including the suspension of the major part of alkaline production to reduce cash expenses. By July 2019Peninsula announced that it has decided to halt alkaline production activities and focus on completing a low pH field demonstration.

At February 26, 2021, Peninsula announced an update on its low pH field demonstration activities under the project. Peninsula revealed that the company launched a field demonstration in August 2020 in a previously unmined area of ​​mining unit 1 (MU1A) with the primary objective being to confirm optimum mining conditions for the project. At March 28and2022, Peninsula announced that it is commencing an update to its 2018 low pH SRI feasibility study, incorporating results and findings from Peninsula’s technical risk reduction activities, including the recently completed MU1A field demonstration. completed.

About Uranium Royalty Corp.

Uranium Royalty Corp. is the world’s only uranium-focused royalty and streaming company and the only Nasdaq-listed uranium pure-play company. The URC provides investors with exposure to the price of uranium through strategic acquisitions of uranium interests, including royalties, streams, debt and equity in uranium companies, as well as than through physical uranium holdings. The Company is well positioned as a capital provider to an industry that needs massive investment in global production capacity to meet the growing need for uranium as a fuel for carbon-free nuclear power. URC has in-depth industry knowledge and expertise to identify and evaluate investment opportunities in the uranium industry. The company’s management and board of directors include individuals with decades of combined experience in the uranium and nuclear power industries, including specific expertise in mine financing, identifying and project evaluation, mine development and the sale and trade of uranium.

Technical Disclosure Note

Darcy Hirsekorn, the company’s technical director, supervised the preparation and reviewed the technical information contained in this presentation. He holds a B.Sc. in geology from the The University of Saskatchewanis a Qualified Person within the meaning of National Instrument 43-101 and is registered as a Professional Geoscientist in Saskatchewan.

Unless otherwise stated, information provided herein by the Company regarding the Lance ISR uranium mine is taken from Peninsula’s annual report for the year ended September 31, 2021as well as information disclosed in Peninsula’s ASX announcement dated March 28, 2022, titled “Update of ongoing spear feasibility study following analysis of MU1A field demonstration results”. As a royalty holder, the Company has limited, where appropriate, access to properties subject to its interests. The Company generally relies on publicly available information regarding these properties and related operations and generally does not have the ability to independently verify such information. In addition, such publicly available information may relate to a broader area of ​​ownership than that covered by the interests of the Company.

The Mineral Resource disclosure contained herein in respect of the Lance Project has been prepared by Peninsula under the 2012 edition of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012) , which differs from the requirements of NI 43-101. (“NI 43-101”) and US securities laws. Unless otherwise indicated, the technical and scientific information contained or referenced herein has been prepared in accordance with National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission applicable to US domestic issuers. Therefore, the scientific and technical information contained or referenced in this press release may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. “Inferred Mineral Resources” have great uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or part of an inferred mineral resource will ever be upgraded to a higher category.

Forward-looking statements

Certain statements in this press release may constitute “forward-looking information”, including those regarding the Company’s expectations regarding the Lance ISR uranium mine, uranium markets and statements regarding the plans and expectations of the project operator. Forward-looking information includes statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this press release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends”, “should”, “could”, “may” and other similar terminology is intended to identify such forward-looking information. Statements that constitute forward-looking information 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, the actual results, performance or achievements of the Company and its industry may differ materially from those implied by these statements. prospective. They should not be interpreted as a guarantee of performance or future results, and will not necessarily be a precise indication of whether or not such results have been achieved. A number of factors could cause actual results to differ materially from such forward-looking information, including, but not limited to, risks inherent in royalty companies, uranium price volatility, risks associated with operators of the projects underlying the Company’s existing and proposed interests and those other risks described in filings with Canadian securities regulators and the United States Securities and Exchange Commission. These and other risks could cause actual results and events to vary materially. Accordingly, readers should exercise caution when relying on forward-looking information, and the Company undertakes no obligation to revise it publicly to reflect subsequent events or circumstances, except as required by law.

Neither the TSX Venture Exchange (the “TSX-V”) nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Uranium Royalty Corp.

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