Western Uranium & Vanadium Corp. (CSE: WUC) (OTCQX: WSTRF) (“Western” or the ”Company”) is pleased to announce that the Company has executed a binding agreement to purchase 125,000 pounds of natural uranium concentrate at the current market price. The triuranium octoxide (U3O8) delivery will take place before June 2022 on a delivery date specified by Western.
This uranium purchase is among several value-added opportunities the company is pursuing. The transaction has the potential to enhance the balance sheet beyond the purchase cost through uranium price appreciation. This strategic uranium inventory could be held as a long-term investment, used for the 2022 delivery under Western’s existing supply agreement, or facilitate the negotiation of future supply agreements.
The basis for this purchase is an acquisition cost substantially below average global uranium production costs. Western first evaluated holding physical uranium in the summer of 2020 as markets began to acknowledge the growing uranium supply-demand imbalance. A decade of oversupply has stifled the development of new uranium mines which has created an undersupply of uranium/nuclear fuel for the next decade. The past year has seen multiple uranium market catalysts including nuclear energy becoming a growth industry due to trends including: the electrification of everything, support for critical mineral supply chains, climate change initiatives, increasing need for baseload electricity generation without CO2 emissions, investments into new nuclear technologies, political support for existing nuclear reactors and the construction of new reactors.
This physical uranium purchase complements Western’s Sunday Mine Complex uranium production plans. The 2019/2020 project brought these conventional mines into “ready-to-produce” status. These mines are valuable because they are among few mines in the world that are permitted, developed, and capable of significant production volumes after a quick restart with minimal capital expenditure required. Recent production remains stockpiled underground and the Company is poised for a quick restart utilizing the existing infrastructure that was developed over multiple decades.
About Western Uranium & Vanadium Corp.
Western Uranium & Vanadium Corp. is a Colorado based uranium and vanadium conventional mining company focused on low cost near-term production of uranium and vanadium in the western United States, and development and application of kinetic separation.
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