Uranium Royalty acquires existing royalty on uranium projects in Canada

Uranium Royalty (UROY) announced 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 $6M. The acquired royalty is a net profit interest, or NPI, 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 75.9M 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. Cameco Corporation, the operator of the projects, submitted an Environmental Impact Statement application in 2009 for the project, anticipated to produce 150,000 to 200,000 tons of ore per year with a submitted potential mine life of 10 years. 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.