Peninsula Energy has announced the signing of a long-term uranium concentrate sale and purchase agreement with a major European utility and nuclear industry leader.
The company said that the agreement is for the sale and purchase of 4.0 million pounds of triuranium octoxide (a compound of uranium) from the Lance Projects over a 10 year period – beginning at the end of 2020 – with a view to increasing the amount to 50% of annual mine production from 2026 onwards.
Peninsula Managing Director and CEO, Mr Gus Simpson said the securing of such a “significant contract” was a substantial achievement for the company that comes after years of negotiation and extensive due diligence on Peninsula and its projects.
“Peninsula is very pleased to execute this contract as it adds geographical diversity to our sales portfolio,” Mr Simpson said.
“It is an important vote of confidence in our projects, management and ability to deliver uranium well into the future. In addition we have worked with the utility for several years during the evaluation period and we anticipate a long and mutually beneficial relationship.”
Peninsula commenced production of triuranium octoxide from its Lance Projects in December 2015.
The company is licensed to produce 3 million pounds of triuranium octoxide from the Lance Projects, which located approximately 75 kilometres North East of Gillette, Wyoming.