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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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October 29, 2021 02:00 ET (06:00 GMT)

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