Yellow Cake PLC Exercise of Option by Uranium Royalty Corp. (9507T)
30 March 2021 - 10:29PM
UK Regulatory
TIDMYCA
RNS Number : 9507T
Yellow Cake PLC
30 March 2021
30 March 2021
Yellow Cake plc ("Yellow Cake" or the "Company")
Exercise of Option by Uranium Royalty Corp.
Yellow Cake, a specialist company operating in the uranium
sector, with a view to holding physical uranium for the long term,
announces that Uranium Royalty Corp ("URC") has elected to exercise
its option to purchase US$10 million worth of U(3) O(8) from Yellow
Cake.
URC will purchase 3 48,068 lb of U(3) O(8) from Yellow Cake at
US$28.73/ lb. Delivery is expected to take place on or around 30
April 2021. The 348,068 lb of U(3) O(8) to be acquired by URC as
part of this option exercise was purchased by Yellow Cake in the
spot market.
As part of the subscription agreement entered into at the time
of the Company's IPO, the Company granted URC an option to acquire
between US$2.5 million and US$10 million worth of U(3) O(8) per
year in each of the nine calendar years commencing on 1 January
2019, up to a maximum aggregate amount over such nine year period
of US$31.25 million worth of U(3) O(8) .
The Company's total U(3) O(8) holding after deducting the URC
purchase is 13.0 million lb, including 100,000 lb of U(3) O(8)
recently purchased by the Company.
ENQUIRIES:
Yellow Cake plc
Andre Liebenberg, CEO Carole Whittall, CFO
Tel: +44 (0) 153 488 5200
Nominated Adviser and Joint Broker: Canaccord Genuity Limited
Henry Fitzgerald-O'Connor James Asensio
Georgina McCooke
Tel: +44 (0) 207 523 8000
Joint Broker: Berenberg
Matthew Armitt Jennifer Wyllie
Varun Talwar Detlir Elezi
Tel: +44 (0) 203 207 7800
Financial Adviser: Bacchus Capital Advisers
Peter Bacchus Richard Allan
Tel: +44 (0) 203 848 1640
Investor Relations: Powerscourt
Peter Ogden Linda Gu
Tel: +44 (0) 7793 858 211
ABOUT YELLOW CAKE
Yellow Cake is a London-listed company founded and established
by Bacchus Capital and headquartered in Jersey, which offers
exposure to the uranium spot price. This is achieved through its
strategy of buying and holding physical triuranium octoxide ("U(3)
O(8) "). It may also seek to add value through the acquisition of
uranium royalties and streams or other uranium related activities.
Yellow Cake seeks to generate returns for shareholders through the
appreciation of the value of its holding of U(3) O(8) and its other
uranium related activities in a rising uranium price environment.
The business is differentiated from its peers by its ten-year
Framework Agreement for the supply of U(3) O(8) with Kazatomprom,
the world's largest uranium producer. Yellow Cake currently holds
9.76 million lb of U(3) O(8) , all of which is held in storage in
Canada and France.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward looking
statements and are based on current expectations, estimates and
projections about the potential returns of the Company and the
industry and markets in which the Company will operate, the
Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans",
"believes", "seeks", "estimates", "projects", "pipeline", "aims",
"may", "targets", "would", "could" and variations of such words and
similar expressions are intended to identify such forward looking
statements and expectations. These statements are not guarantees of
future performance or the ability to identify and consummate
investments and involve certain risks, uncertainties and
assumptions that are difficult to predict, qualify or quantify.
Therefore, actual outcomes and results may differ materially from
what is expressed in such forward looking statements or
expectations. Among the factors that could cause actual results to
differ materially are: uranium price volatility, difficulty in
sourcing opportunities to buy or sell U(3) O(8) , foreign exchange
rates, changes in political and economic conditions, competition
from other energy sources, nuclear accident, loss of key personnel
or termination of the services agreement with 308 Services Limited,
changes in the legal or regulatory environment, insolvency of
counterparties to the Company's material contracts or breach of
such material contracts by such counterparties. These
forward-looking statements speak only as at the date of this
announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward
looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based
unless required to do so by applicable law or the AIM Rules.
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END
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