Uranium Royalty Corp. Expands Physical Uranium Holdings

Rhea-AI Summary

Uranium Royalty Corp. (NASDAQ: UROY) has announced commitments to purchase an additional 200,000 pounds of uranium concentrate at an average price of US$58.40 per pound, with deliveries set for April/May 2022. This acquisition will increase URC's total uranium inventory to 1,548,068 pounds, acquired at a weighted average price of US$42.20 per pound, raising the net realizable value by approximately US$25 million based on current spot prices. URC also has future commitments for 500,000 pounds through 2025.

Positive

• Acquisition of 200,000 lbs U3O8 at US$58.40 per pound enhances inventory.
• Total uranium inventory now at 1,548,068 lbs with a weighted average cost of US$42.20.
• Net realizable value increased by approximately US$25 million due to higher spot prices.

Negative

• None.

VANCOUVER, BC, March 28, 2022 /PRNewswire/ - Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) ("URC" or the "Company") announces that it has made additional uranium concentrate purchase commitments totaling 200,000 lbs U₃O₈ at an average cost of US$58.40 per pound. Deliveries will be made in April/May 2022 to URC's storage account with Cameco Corporation in Ontario, Canada. The purchase will be funded with cash on hand and available credit. 

With these additions, URC will hold physical uranium inventories of 1,548,068 pounds, acquired at a weighted average price of US$42.20 per pound. The net realizable value of URC's existing uranium inventories has increased by approximately US$25 million since acquisition based on the most recent daily spot price published by TradeTech LLC, being US$58.40 per pound.

As previously disclosed, URC has also contracted future purchase commitments of 500,000 pounds U₃O₈ through 2025 at a weighted average price of US$47.71 per pound.

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 18, 2021 to its short form base shelf prospectus dated June 16, 2021.

About Uranium Royalty Corp.

Uranium Royalty Corp. (URC) is the world's only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the NASDAQ. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through holdings of physical uranium. The Company is well positioned as a capital provider to an industry needing massive investments in global productive capacity to meet the growing need for uranium as fuel for carbon-free nuclear energy. URC has deep industry knowledge and expertise 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.

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.

View original content:https://www.prnewswire.com/news-releases/uranium-royalty-corp-expands-physical-uranium-holdings-301511406.html

SOURCE Uranium Royalty Corp.

FAQ

What recent uranium purchases has Uranium Royalty Corp made?

Uranium Royalty Corp has committed to purchase an additional 200,000 lbs of uranium concentrate.

What is the average cost per pound for Uranium Royalty Corp's recent uranium purchase?

The average cost per pound for the recent purchase is US$58.40.

How much uranium inventory does Uranium Royalty Corp currently hold?

Uranium Royalty Corp currently holds 1,548,068 lbs of uranium.

What has been the impact on the net realizable value of Uranium Royalty Corp's uranium inventory?

The net realizable value of the inventory has increased by approximately US$25 million.

What are Uranium Royalty Corp's future uranium commitments?

Uranium Royalty Corp has contracted for future commitments of 500,000 lbs U3O8 through 2025.