Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) is pleased to announce that it has entered into a binding royalty purchase agreement to acquire an additional royalty on a portion of the Churchrock uranium project owned indirectly by Laramide Resources Ltd. in New Mexico, USA. The Churchrock Project is an advanced stage, ISR uranium project located in the Grants Mineral Belt of New Mexico, USA, 12 miles northeast of Gallup, New Mexico. Laramide has disclosed that the Churchrock Project and nearby properties represent one of the largest and highest-grade undeveloped ISR uranium projects in the United States.
Transaction Highlights:
Scott Melbye, Chief Executive Officer of URC stated: “Laramide’s Churchrock Project represents one of the largest undeveloped ISR assets in the United States. We’re very pleased to acquire an additional royalty on this asset, as it represents an important future source of U.S. uranium production.”
Mr. Melbye continued: “Recent, successful, bipartisan legislation in the U.S. Congress, has sought to revitalize the American domestic nuclear fuel cycle. These bills, signed into law, ‘The Prohibiting Russian Uranium Imports Act’ and the ‘Nuclear Fuel Security Act’, provide funding to incentivize the build-out of uranium, conversion, and enrichment capacity in the U.S., and completely phase out Russian imports by 2028. Our enlarging footprints in the uranium royalty sector in the United States as evidenced by the acquisition of the additional royalty on Churchrock fit squarely in support of those initiatives“.
Closing of the Transaction is subject to, among other things, the satisfaction of customary closing conditions and is expected to occur before the end of July 2024.
The Churchrock Project
The Churchrock Project is a Development stage, In-Situ Recovery (“ISR”) uranium project located on the western end of the Grants Mineral Belt of New Mexico, USA, 12 miles north-northeast of Gallup, New Mexico. The Project is 100% owned by NuFuels, Inc., a wholly owned subsidiary of Laramide. Laramide is a Canadian company engaged in the exploration and development of uranium assets based in Australia and the United States.
Church Rock has publicly disclosed a mineral resource estimate that includes a total inferred resource of 10.22 Mlbs U3O8 on Section 8 of the Project. The Company notes that the purchased royalty interest covers only a portion of such section. The preliminary economic assessment disclosed by Laramide (the “PEA”) provides for production in Section 8 occurring in the first eight years of production, recovering one million pounds of U3O8 per annum upon steady state production assuming well field recovery of 80%.
Four years of preproduction for wellfield development is anticipated in the PEA, but all other infrastructure necessary to resume operations is in place. Laramide also disclosed that it holds substantially all required permits and licenses to begin uranium production from Section 8. Life of Mine unit operating cost is estimated at US$27.70/lb. U3O8 the PEA. The study assumed a static uranium price of US$75/lb. U3O8.
For further information regarding the Churchrock Project, including the above-referenced PEA and mineral resource estimate, please refer to the technical report titled “Technical Report on the Churchrock Uranium Project, McKinley County, New Mexico, USA”, with an effective date of February 22, 2023, prepared for Laramide Resources Ltd., available at www.sedarplus.ca.
The Churchrock Royalty
Each of the vendors owns an undivided one-half interest in a uranium royalty of six percent (6%) mine price on part of the S2NE4; part of the E2SW4: part of the SE4NW4 and SE4, Section 8, T16N, R16W, N.M.P.M., McKinley County, New Mexico. The royalty covers the 10 patented mining claims in Section 8 that comprise New Mexico Mineral Survey 2220 on the Churchrock Project.
The royalty is structured as a Gross Overriding Royalty of 6% “mine price”, which anticipates revenues based on contract sales and recovery of certain reasonable and actual costs to transport the mineral to the final point of sale.
About Uranium Royalty Corp.
Uranium Royalty Corp. is the world’s only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the NASDAQ. 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.
Search Minerals Inc. (TSX-V: SMY) is pleased to announce that i... READ MORE
New Found Gold Corp. (TSX-V: NFG) (NYSE-A: NFGC) is pleased to re... READ MORE
GoldHaven Resources Corp. (CSE: GOH) (OTCQB: GHVNF) (FSE: 4QS0) ... READ MORE
Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) reports the Comp... READ MORE
Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) reported its third quar... READ MORE