UR-Energy Secures Long-Term Uranium Supply Deal
Ticker: URG · Form: 8-K · Filed: Mar 14, 2024 · CIK: 1375205
Sentiment: bullish
Topics: uranium, supply-agreement, long-term-contract
TL;DR
UR-Energy locked in a multi-year uranium supply deal with a major utility starting in 2028.
AI Summary
UR-Energy Inc. announced on March 13, 2024, that it has entered into a Uranium Supply Agreement with an unnamed major U.S. utility. The agreement is for the supply of uranium from UR-Energy's Lost Creek and Shirley Basin facilities in Wyoming. Deliveries are scheduled to commence in 2028 and continue through 2035, with specific quantities and pricing to be determined by mutual agreement.
Why It Matters
This agreement provides UR-Energy with a significant long-term revenue stream and demonstrates continued demand for U.S.-produced uranium from major utilities.
Risk Assessment
Risk Level: medium — The agreement's success depends on future uranium market conditions and the ability to meet delivery schedules.
Key Numbers
- 2028-2035 — Delivery Period (Duration of the uranium supply agreement)
Key Players & Entities
- UR-Energy Inc. (company) — Registrant
- March 13, 2024 (date) — Date of earliest event reported
- Lost Creek (location) — UR-Energy facility in Wyoming
- Shirley Basin (location) — UR-Energy facility in Wyoming
- 2028 (date) — Start year for uranium deliveries
- 2035 (date) — End year for uranium deliveries
FAQ
What is the specific quantity of uranium to be supplied under the agreement?
The filing states that specific quantities are to be determined by mutual agreement between UR-Energy and the utility.
What is the pricing structure for the uranium supply?
The filing indicates that pricing will be determined by mutual agreement, but does not provide specific details.
Which major U.S. utility is UR-Energy supplying uranium to?
The filing does not disclose the name of the utility, referring to it only as a 'major U.S. utility'.
When will the uranium deliveries commence?
Deliveries are scheduled to commence in 2028.
From which UR-Energy facilities will the uranium be sourced?
The uranium will be supplied from UR-Energy's Lost Creek and Shirley Basin facilities in Wyoming.
Filing Stats: 870 words · 3 min read · ~3 pages · Grade level 14.8 · Accepted 2024-03-14 17:06:27
Filing Documents
- urg_8k.htm (8-K) — 24KB
- 0001654954-24-003176.txt ( ) — 142KB
- urg-20240313.xsd (EX-101.SCH) — 6KB
- urg-20240313_lab.xml (EX-101.LAB) — 14KB
- urg-20240313_cal.xml (EX-101.CAL) — 1KB
- urg-20240313_pre.xml (EX-101.PRE) — 9KB
- urg-20240313_def.xml (EX-101.DEF) — 2KB
- urg_8k_htm.xml (XML) — 4KB
01 Other Events
Item 8.01 Other Events On March 13, 2024, Ur-Energy Inc. (the Company) announced its decision to build-out its wholly-owned Shirley Basin in situ recovery uranium mine in Carbon County, Wyoming. The project has all major permits and licenses. The Company estimates that final design and detail engineering work, ordering of materials and equipment and construction of the satellite plant facility and initial wellfield development will take approximately 24 months to complete. The satellite plant will consist of ion exchange, wastewater and groundwater restoration circuits. A detailed economic analysis can be found in the Technical Report Summary "Shirley Basin ISR Uranium Project, Carbon County, Wyoming, USA" as amended, March 11, 2024, filed with the Company's Form 10K/A Annual Report for 2023, March 12, 2024. The timing to complete build out of Shirley Basin as currently projected is an estimate only, dependent upon supply chain, labor and other variables. The technical and economic viability of the Shirley Basin Project as set forth in the Shirley Basin Technical Summary Report, including mineral resource estimates, life of mine, costs of production, are estimated projections based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Cautionary Note Regarding Forward-Looking Information This Form 8-K may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future, including the timing of development and construction activities at the Shirley Basin project; the components of the proposed satellite plant; and the technical and economic viability of the Shirley Basin Project as set forth in the Shirley Basin Technical Report Summary. All statements, other than statements of historical fact, are considered to be forward-looking s