Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) is pleased to announce that it acquired an existing royalty on the Millennium and Cree Extension Uranium Projects in Saskatchewan, Canada from a third-party industrial gas company for total cash consideration of $6 million.

Highlights:

• The acquired royalty is a net profit interest of 10% on an approximate 20.6955% participating interest in the Projects. The royalty becomes payable after recovery of all qualifying preproduction expenditures incurred after the establishment of the royalty.
• The Millennium Project hosts an Indicated Mineral Resource of 75.9 million pounds U₃O₈ at an average grade of 2.39% U₃O₈ and an Inferred Resource of 29.0 Mlbs U₃O₈ at an average grade of 3.19% U₃O₈, which places it among the largest undeveloped uranium projects globally. ⁽¹⁾
• Cameco Corporation Inc. the operator of the Projects, submitted an Environmental Impact Statement application in 2009 for the project, anticipated to produce 150,000 to 200,000 tonnes of ore per year with a submitted potential mine life of 10 years.⁽²⁾
• The acquisition of the royalty on these two Projects provides URC exposure to approximately 12,800 hectares of ground in the highly prospective Athabasca Basin, with well-respected operators, and in one of the top mining jurisdictions in the world.

Scott Melbye, Chief Executive Officer of URC stated: “We are very excited to acquire this significant royalty on the Millennium and Cree Extension Projects. Cameco has previously completed substantial development work on the Millennium project and it remains one of the largest undeveloped projects in Cameco’s portfolio. It represents an important potential contributor to the future global production pipeline. The transaction is another example of our ability to leverage the URC team’s experience and networks to source and execute accretive uranium royalty transactions.”

The Millennium Project

The Millennium Project is an advanced stage, conventional uranium project located 36 km northwest of Cameco’s Key Lake Mill in Saskatchewan, Canada. The project is a joint venture between Cameco and Japan Canada Uranium. Cameco’s equity share is stated at 69.9% and Cameco is the operator of the project. Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. JCU is a Canadian exploration company with a focus on Saskatchewan’s Athabasca Basin, jointly owned by Uranium Energy Corp. and Denison Mines Corp.

Cameco has disclosed that the Millennium Project hosts estimated resources of 1.4 million tonnes at an average grade of 2.39% U₃O₈ for a total of 75.9 million pounds U₃O₈ in the indicated category and 0.4 million tons at an average grade of 3.19% U₃O₈ for a total of 29.0 Mlbs U₃O₈ in the inferred category. These estimates are on reported on a 100% basis.

Cameco has disclosed that it submitted a draft EIS submission for the project in 2009, which submission included anticipated production of 150,000 to 200,000 tonnes of ore per year with a submitted potential mine life of 10 years. Cameco chose to pull the EIS application on May 15, 2014, due to market conditions at the time.

The Cree Extension Project

The Cree Extension Project is an Exploration stage project located 36 km northwest of Cameco’s Key Lake Mill. The project is a joint venture among Cameco, Orano Canada Inc., and JCU. The land is located west of Denison’s Wheeler River project and southwest of Cameco’s McArthur River project.

The Millennium and Cree Extension Royalty

The royalty is a 10% NPI on an approximate 20.6955% participating interest in the Projects, which participating interest was previously transferred to the existing owners in 1992. As a profit-based NPI interest, the acquired royalty is calculated based upon generated revenue, with deductions for certain expenses and costs, which include cumulative expense accounts, including development costs.

About Uranium Royalty Corp.

Uranium Royalty Corp. is the world’s only publicly traded uranium-focused royalty and streaming company. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through holdings of physical uranium. The Company is well positioned as a capital provider to an industry needing massive investments in global productive capacity to meet the growing need for uranium as fuel for carbon-free nuclear energy. URC has deep industry knowledge and expertise to identify and evaluate investment opportunities in the uranium industry. The Company’s management and the Board include individuals with decades of combined experience in the uranium and nuclear energy sectors, including specific expertise in mine finance, project identification and evaluation, mine development and uranium sales and trading.

Figure 1 – Location of the Millennium deposit – Source: Cameco Corporation website (CNW Group/Uranium Royalty Corp.)