Uranium Royalty Corp Expands Physical Uranium Holdings to 648,068 Pounds of U3O8 at a Weighted Average Cost of US $ 33.10 per Pound of U3O8
VANCOUVER, BC, September 15, 2021 / PRNewswire / – Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) (“URC“or the”Society“) announces that it is entering into contracts for three additional cash purchases totaling 300,000 pounds U3O8 at an average cost of US $ 38.17 per U pound3O8. Deliveries are scheduled for September /October 2021 and will be accomplished by book transfers to the RCU storage account at Cameco Corporation’s fuel service facilities in Ontario, Canada. This acquisition is entirely financed by available cash. From September 14, 2021, URC has 80 million Canadian dollars in cash, marketable securities and physical uranium.
Upon completion of these deliveries, URC will hold a physical inventory of 648,068 U pounds3O8 at a weighted average cost of US $ 33.10 per pound. Trade Tech’s latest daily spot price is at US $ 45.00 per book from September 14, 2021, resulting in an increase in the net realizable value of RCU’s physical uranium holdings by US $ 7.7 million.
The RCU has a mandate to make periodic purchases of physical uranium in order to provide attractive exposure to commodity prices to shareholders, particularly in these early stages of a bull market for uranium. The global megatrend towards decarbonization provides a major catalyst for carbon-free, safe and reliable nuclear power. Uranium supply and demand fundamentals continue to improve, with uranium demand now exceeding pre-Fukushima levels and global mining production (128 million pounds) expected to lag 63 million pounds pounds on global consumption (191 million pounds) in 2021 (UxC data – Q3 2021 report).
It’s the 5e year of the production / consumption gap which had a positive impact on the reduction of excess stocks on the market. Purchasing activities from producers and financial entities, such as the Sprott Physical Uranium Trust, have recently accelerated this rebalancing, causing the spot price to rise 49% in the past five weeks.
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is the world’s only uranium royalty company and the only uranium-focused company on the Nasdaq. URC strives to gain exposure to uranium prices by making strategic investments in uranium interests, including royalties, flows, 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 in the uranium industry and the current pricing environment. historically low uranium. URC has in-depth industry knowledge and expertise to identify and assess investment opportunities in the uranium industry. The management and board of directors of the Company include individuals with decades of combined experience in the uranium and nuclear energy industries, including specific expertise in mine financing, identification and l uranium project evaluation, mining development and sale and trade.
Certain statements contained in this press release may constitute “forward-looking information”, including those concerning the Company’s expectations regarding the uranium markets. Forward-looking information includes statements that deal with or discuss activities, events or developments that the Company expects or anticipates might occur in the future. When used in this press release, words such as “believes”, “expects”, “plans”, “plans”, “will”, “believes”, “intends”, “Should”, “could”, “could” and other similar terminology is intended to identify such forward-looking information. Statements constituting forward-looking information reflect the current expectations and beliefs of the management of the Company. These statements involve material 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 forward-looking statements. . They should not be interpreted as a guarantee of future performance or results and will not necessarily constitute a precise indication of whether or not such results will be obtained. A number of factors could cause actual results to differ materially from this forward-looking information, including, without limitation, 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 significantly. Therefore, readers should exercise caution in relying on forward-looking information and the Company makes no commitment 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.