NexGen Energy (TSX: NXE) has entered into its first sales contracts for uranium that is set to be produced at its Rook I project in the Athabasca Basin of Saskatchewan. The first deliveries, under the current contracts, are set to occur in 2029.
A total of five million pounds of U3O8 has been contracted out via sales agreements with multiple US nuclear utility companies. The contracts are said to contain market-pricing related mechanisms at the time of delivery, with deliveries spread out over five years, and averaging one million pounds of U3O8 per year.
A total of 231.7 million pounds of U3O8 contained within probable mineral reserves remains uncontracted. Discussions are said to be ongoing with additional US-based utilities, along with utilities based in Europe and Asia.
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READ: NexGen Energy Completes Federal Technical Review For Rook I Project
“These offtake awards with premier US utilities represents a pivotal moment for NexGen. They underscore the premier quality and scalability of the Rook I Project, whilst offering diversification of supply from existing centralised sources. Further, the terms of these awards reflect market related pricing mechanisms at the time of delivery reflecting NexGen’s long-term stated strategy of optimizing the value of each pound produced,” commented Leigh Curyer, CEO of NexGen.
NexGen last traded at $11.44 on the TSX.
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