DESIGNATED NEWS RELEASE
VANCOUVER, BC, Oct. 28,
2024 /PRNewswire/ - Uranium Royalty Corp.
(NASDAQ: UROY) (TSX: URC) ("URC" or the "Company") is
pleased to announce that it acquired an existing royalty on the
Millennium and Cree Extension Uranium Projects in Saskatchewan, Canada (the "Projects")
from a third-party industrial gas company for total cash
consideration of $6 million.
Highlights:
- The acquired royalty is a net profit interest (NPI) of 10% on
an approximate 20.6955% participating interest in the Projects. The
royalty becomes payable after recovery of all qualifying
preproduction expenditures incurred after the establishment of the
royalty.
- The Millennium Project hosts an Indicated Mineral Resource of
75.9 million pounds U3O8 at an average grade
of 2.39% U3O8 and an Inferred Resource of
29.0 Mlbs U3O8 at an average grade of 3.19%
U3O8, which places it among the largest
undeveloped uranium projects globally. (1)
- Cameco Corporation Inc. ("Cameco"), the operator of the
Projects, submitted an Environmental Impact Statement
("EIS") application in 2009 for the project, anticipated to
produce 150,000 to 200,000 tonnes of ore per year with a submitted
potential mine life of 10 years.(2)
- The acquisition of the royalty on these two Projects provides
URC exposure to approximately 12,800 hectares of ground in the
highly prospective Athabasca
Basin, with well-respected operators, and in one of the top mining
jurisdictions in the world.
Note 1: Resource
estimates are on a 100% basis and have been summarized from
Cameco's Annual Information Form for the year ended
December 31, 2023.
Note 2: Based on information contained on Cameco's
website.
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Scott Melbye, Chief Executive
Officer of URC stated: "We are very excited to acquire this
significant royalty on the Millennium and Cree Extension Projects.
Cameco has previously completed substantial development work on the
Millennium project and it remains one of the largest undeveloped
projects in Cameco's portfolio. It represents an important
potential contributor to the future global production pipeline. The
transaction is another example of our ability to leverage the URC
team's experience and networks to source and execute accretive
uranium royalty transactions."
The Millennium Project
The Millennium Project is an advanced stage, conventional
uranium project located 36 km northwest of Cameco's Key Lake Mill
in Saskatchewan, Canada. The
project is a joint venture between Cameco and Japan Canada Uranium
("JCU"). Cameco's equity share is stated at 69.9% and Cameco
is the operator of the project. Cameco is one of the largest global
providers of the uranium fuel needed to energize a clean-air world.
JCU is a Canadian exploration company with a focus on Saskatchewan's Athabasca Basin, jointly owned by Uranium
Energy Corp. and Denison Mines Corp. ("Denison").
Cameco has disclosed that the Millennium Project hosts estimated
resources of 1.4 million tonnes at an average grade of 2.39%
U3O8 for a total of 75.9 million pounds
U3O8 in the indicated category and 0.4
million tons at an average grade of 3.19%
U3O8 for a total of 29.0 Mlbs
U3O8 in the inferred category. These
estimates are on reported on a 100% basis.
Cameco has disclosed that it submitted a draft EIS submission
for the project in 2009, which submission included anticipated
production of 150,000 to 200,000 tonnes of ore per year with a
submitted potential mine life of 10 years. Cameco chose to pull the
EIS application on May 15, 2014, due
to market conditions at the time.
The Cree Extension Project
The Cree Extension Project is an Exploration stage project
located 36 km northwest of Cameco's Key Lake Mill. The project is a
joint venture among Cameco, Orano Canada Inc., and JCU. The land is
located west of Denison's Wheeler River project and southwest of
Cameco's McArthur River project.
The Millennium and Cree Extension Royalty
The royalty is a 10% NPI on an approximate 20.6955%
participating interest in the Projects, which participating
interest was previously transferred to the existing owners in 1992.
As a profit-based NPI interest, the acquired royalty is calculated
based upon generated revenue, with deductions for certain expenses
and costs, which include cumulative expense accounts, including
development costs.
About Uranium Royalty Corp.
Uranium Royalty Corp. is the world's only publicly traded
uranium-focused royalty and streaming company. 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.
Website: www.UraniumRoyalty.com
Note on Technical Disclosure
Darcy Hirsekorn, the Company's
Chief Technical Officer, has supervised the preparation of and
reviewed the technical information contained in this presentation.
He holds a B.Sc. in Geology from the University of Saskatchewan, is a qualified person
as defined in National Instrument 43-101 and is registered as a
professional geoscientist in Saskatchewan.
Unless otherwise indicated, the scientific and technical
information herein regarding the Millennium Project has been
derived from Cameco's website at www.cameco.com and its Annual
Information Form for the year ended December
31, 2023, a copy of which is available under its profile on
SEDAR+.
As a royalty holder, the Company has limited, if any, access to
the properties subject to its interests. The Company generally
relies on publicly available information regarding these properties
and related operations and generally has no ability to
independently verify such information. In addition, such publicly
available information may relate to a larger property area than
that covered by the Company's interests.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced herein has been prepared in
accordance with NI 43-101, which differs significantly from the
requirements of the U.S. Securities and Exchange Commission
applicable to U.S. domestic issuers Accordingly, the scientific and
technical information contained or referenced in this press release
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC. "Inferred mineral resources" have a great amount of
uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that
all or any part of an inferred mineral resource will ever be
upgraded to a higher category.
Forward Looking Statements
Certain statements in this news release may constitute
"forward-looking information" and "forward looking statements", as
defined under applicable securities laws, including those regarding
the disclosed expectations of the operator of the Projects,
including expectations regarding the Projects and the Company's
business plans. 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 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 information. Statements constituting
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, 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 information, including, without limitation, 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
filings with Canadian securities regulators and the U.S. Securities
and Exchange Commission. These risks, as well as others, could
cause actual results and events to vary significantly. Accordingly,
readers should exercise caution in relying upon forward-looking
information and the Company undertakes no obligation to publicly
revise them to reflect subsequent events or circumstances, except
as required by law.
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SOURCE Uranium Royalty Corp.