NexGen Energy (TSX: NXE) has entered into its first sales contracts for uranium that is set to be produced at its Rook I project in the Athabasca Basin of Saskatchewan. The first deliveries, under the current contracts, are set to occur in 2029.
A total of five million pounds of U3O8 has been contracted out via sales agreements with multiple US nuclear utility companies. The contracts are said to contain market-pricing related mechanisms at the time of delivery, with deliveries spread out over five years, and averaging one million pounds of U3O8 per year.
A total of 231.7 million pounds of U3O8 contained within probable mineral reserves remains uncontracted. Discussions are said to be ongoing with additional US-based utilities, along with utilities based in Europe and Asia.
Sponsored · First Phosphate Corp.
READ: NexGen Energy Completes Federal Technical Review For Rook I Project
“These offtake awards with premier US utilities represents a pivotal moment for NexGen. They underscore the premier quality and scalability of the Rook I Project, whilst offering diversification of supply from existing centralised sources. Further, the terms of these awards reflect market related pricing mechanisms at the time of delivery reflecting NexGen’s long-term stated strategy of optimizing the value of each pound produced,” commented Leigh Curyer, CEO of NexGen.
NexGen last traded at $11.44 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
