This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
August 18, 2021, to its short form
base shelf prospectus dated June 16,
2021.
VANCOUVER, BC, April 1,
2022 /CNW/ - Uranium Royalty Corp. (NASDAQ:
UROY) (TSXV: URC) ("URC" or the "Company") is pleased
to announce that it has acquired an additional 1% gross revenue
royalty interest on the Lance In-Situ Recovery ("ISR") Uranium Mine
in Wyoming, USA operated by Strata
Energy Inc. ("Strata"), a wholly owned subsidiary of Peninsula
Minerals Limited ("Peninsula").
Highlights
- Near-term production potential: The Lance ISR Uranium Mine is a
fully licensed mine, with Peninsula currently undertaking an
updated feasibility study in preparation for a full re-start of ISR
production. Mine production was idled in 2019 as the operator
initiated a transition to a low-Ph mining method, but the project
has been producing uranium in limited amounts during the test
mining phase.
- Additional exposure to U.S. uranium production: Provides URC
with additional exposure to potential U.S. derived uranium
production.
- The royalty is a 1% gross revenue royalty interest: The royalty
covers the entirety of the current permitted project area and
expands upon URC's existing 4% gross revenue royalty on portions of
the Lance Project. It is applicable to all uranium and related
minerals from the project area.
The royalty was acquired from an existing royalty holder and the
consideration paid by the Company was US$1.25 million in cash.
Scott Melbye, Chief Executive
Officer of URC stated: "URC couldn't be more pleased with the
addition of this comprehensive, near-term cash-flowing royalty on
the Lance Project. We have great confidence in Peninsula's
management and technical teams to be able to bring this competitive
asset into full production as one of the early movers, taking
advantage of improving uranium markets. We look forward to the
updated feasibility study recently announced by Peninsula."
Mr. Melbye continued: "As the global nuclear fuel industry
reassesses strategic and geopolitical risk, the value of American
ISR uranium production in a resource-friendly state like
Wyoming cannot be underestimated.
As a result, we believe uranium projects in North America that are not only fully
permitted and licensed, but free of control or influence from
Russia and China, will attract stronger premiums as a
result of the current geopolitical climate."
The Project
The Lance Project is an ISR uranium project located on the
north-east flank of the Powder River Basin in Wyoming, USA and is comprised of approximately
38,416 acres of mixed surface and mineral right holdings including
private access agreements as well as state and federal mining
claims. In its annual report for the year ended September 31, 2021, Peninsula disclosed a JORC
resource comprised of measured and indicated resources of 15.8 Mlbs
at an average grade of 494 ppm U3O8 and
inferred resources of 37.8 Mlbs at an average grade of 474 ppm
U3O8 for the Lance Project. The estimate was
disclosed as of December 31,
2020.
The project was licensed and constructed by Strata and commenced
commercial operations in 2015. From September through December of
2018, Peninsula made a series of announcements outlining the
proposed transition to low-pH mining, including suspending most of
the alkaline-based production in order to reduce cash expenditures.
By July 2019, Peninsula announced
that it had determined to idle alkaline-based production activities
and focus on completion of a low-pH field demonstration.
On February 26, 2021, Peninsula
announced an update on its low-pH field demonstration activities at
the project. Peninsula disclosed that the company initiated a field
demonstration in August 2020 in a
previously unmined area of Mine Unit 1 (MU1A) with the primary
objective being to confirm the optimal operating conditions for the
project. On March 28th,
2022, Peninsula announced that it was commencing an update to its
2018 Low-Ph ISR Feasibility Study, incorporating results and
conclusions from Peninsula's technical de-risking activities,
including the recently completed MU1A Field Demonstration.
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.
Note on Technical Disclosure
Darcy Hirsekorn, the Company's
Chief Technical Officer, has supervised the preparation of and
reviewed the technical information contained in this presentation.
He holds a B.Sc. in Geology from the University of Saskatchewan, is a qualified person
as defined in National Instrument 43-101 and is registered as a
professional geoscientist in Saskatchewan.
Except where otherwise stated, the Company's disclosure herein
relating to the Lance ISR Uranium Mine has been derived from
Peninsula's annual report for the year ended September 31, 2021, as well as information
disclosed in Peninsula's ASX announcement dated March 28, 2022, titled "Updated Lance Feasibility
Study Underway Following Analysis of MU1A Field Demonstration
Results". As a royalty holder, the Company has limited, if any,
access to the properties subject to its interests. The Company
generally relies on publicly available information regarding these
properties and related operations and generally has no ability to
independently verify such information. In addition, such publicly
available information may relate to a larger property area than
that covered by the Company's interests.
The mineral resource disclosure contained herein regarding the
Lance Project was prepared by Peninsula under the 2012 Edition of
the Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC 2012), which differs from the
requirements of Canadian National Instrument 43-101 ("NI 43-101")
and U.S. securities laws. Unless otherwise indicated, the technical
and scientific disclosure contained or referenced herein has been
prepared in accordance with NI 43-101, which differs significantly
from the requirements of the U.S. Securities and Exchange
Commission applicable to U.S. domestic issuers Accordingly, the
scientific and technical information contained or referenced in
this press release may not be comparable to similar information
made public by U.S. companies subject to the reporting and
disclosure requirements of the SEC. "Inferred mineral resources"
have a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category.
Forward Looking Statements
Certain statements in this news release may constitute
"forward-looking information", including those regarding the
Company's expectations regarding the Lance ISR Uranium Mine,
uranium markets, and statements regarding the plans and
expectations of the project operator. Forward-looking information
includes statements that address or discuss activities, events or
developments that the Company expects or anticipates may occur in
the future. When used in this news release, words such as
"estimates", "expects", "plans", "anticipates", "will", "believes",
"intends" "should", "could", "may" and other similar terminology
are intended to identify such forward-looking information.
Statements constituting forward-looking information reflect the
current expectations and beliefs of the Company's management. These
statements involve significant uncertainties, known and unknown
risks, uncertainties and other factors and, therefore, actual
results, performance or achievements of the Company and its
industry may be materially different from those implied by such
forward-looking statements. They should not be read as a guarantee
of future performance or results, and will not necessarily be an
accurate indication of whether or not such results will be
achieved. A number of factors could cause actual results to differ
materially from such forward-looking information, including,
without limitation, risks inherent to royalty companies, uranium
price volatility, risks related to the operators of the projects
underlying the Company's existing and proposed interests and those
other risks described in filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission. These
risks, as well as others, could cause actual results and events to
vary significantly. Accordingly, readers should exercise caution in
relying upon forward-looking information and the Company undertakes
no obligation to publicly revise them to reflect subsequent events
or circumstances, except as required by law.
Neither the TSX Venture Exchange (the "TSX-V") nor its
Regulation Services Provider (as that term is defined in policies
of the TSX-V) accepts responsibility for the adequacy or accuracy
of this release.
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SOURCE Uranium Royalty Corp.