Littleton, Colorado (PR Newswire – February 9, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG) (“Ur-Energy” or the “Company”) is pleased to announce that it has successfully negotiated its thirdagreement to supply uranium produced at its wholly-owned Lost Creek Project.
The signing of this supply agreement marks the realization of Ur-Energy’s strategic product marketing objective by which the Company has committed a pre-determined portion of the forecasted uranium production from Lost Creek into term sales agreements with U.S. based nuclear utilities. This agreement calls for total deliveries of 100,000 pounds of uranium concentrate per year in a multi-year schedule. The agreement specifies firm delivery prices in the low US$60 per pound range over its term.
Securing product pricing that supports the development plans for the Lost Creek Project is a core component of the Company’s uranium marketing strategy developed under an arrangement with Mr. Jim Cornell of NuCore Energy. Ur-Energy expects to begin production from Lost Creek in the second quarter of 2013 and ramp up production to nearly one million pounds per year in 2014 and beyond. Mr. Cornell notes, “Ur-Energy recognizes that term contract pricing has historically exceeded the pricing available in the uranium spot market. One leading source for uranium market information currently reports a twenty percent premium for term contracts over the current uranium spot price. For this reason, favorable term delivery contracts are an essential component of a sound marketing plan.”
Ur-Energy CEO Wayne Heili said, “We are pleased that our efforts to work closely with North American utilities have resulted in several valuable contracts. Adding this marketing component to our collection of accomplishments in project financing, permitting and licensing, resource development, and project design establishes a solid foundation for the future of Ur-Energy and the Lost Creek Project.”
Ur-Energy is a junior uranium mining company currently constructing its first in-situ recovery (ISR) uranium mine in south- central Wyoming at its fully licensed and permitted Lost Creek project. The Lost Creek processing facility will have two million pounds per year capacity and is anticipated to be in production in the second half of 2013. Ur-Energy engages in the identification, acquisition, exploration and development of uranium projects in the United States and Canada. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. Ur-Energy’s corporate office is located in Littleton, Colorado; its registered office is in Ottawa, Ontario. Ur-Energy’s website iswww.ur-energy.com.