Yellow Cake PLC Purchase of 2mlb U3O8 at US$46.32/lb (7009Q)
29 October 2021 - 05:00PM
UK Regulatory
TIDMYCA
RNS Number : 7009Q
Yellow Cake PLC
29 October 2021
29 October 2021
Yellow Cake plc ("Yellow Cake" or the "Company")
Exercise of Option to Purchase 2 million lb U(3) O(8) at a price
of US$46.32/lb
Yellow Cake plc (the "Company"), a specialist company operating
in the uranium sector with a view to holding physical uranium for
the long term , is pleased to announce that, further to its
successful equity fundraise on 27 October to purchase up to 3
million lb of U(3) O(8) , it has now elected to exercise its option
to purchase 2 million lb of U(3) O(8) from Curzon Uranium Limited
("Curzon") at a price of US$46.32/lb . It is expected that delivery
of the U(3) O(8) will take place by the end of November 2021.
Once the U(3) O(8) from Curzon has been delivered, the Company's
total holdings will increase to 17.86 million lb of U(3) O(8) on a
proforma basis.
The Company also expects to conclude an agreement with JSC
National Atomic Company Kazatomprom ("Kazatomprom") to purchase
approximately 1 million lb of U(3) O(8) at a price of $47.58/lb for
delivery by June 2022 and will update the market in due course.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018.
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-quoted company, 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 13.86 million pounds 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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