Uranium Royalty Corp. (TSXV: URC) announced this morning that it is entering into contracts for three additional spot purchases totaling 300,000 pounds of U3O8. The purchases carry an average cost of US$38.17 per pound.
These transactions are expected to bring the company’s physical uranium inventory to 648,068 pounds at a weighted average cost of US$33.10 per pound. As of this writing, this pro forma inventory values at US$29.1 million, effectively notching US$7.7 million increase in net realizable value.
The company relayed that the purchases are fully funded with cash on hand, with expected delivery schedules around September/October 2021. As of September 14, 2021, the firm has an asset value of $80 million from its cash, marketable securities, and physical uranium holdings.
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In August, the firm announced an at-the-market equity program seeking to raise US$40 million.
Uranium Royalty Corp. last traded at $5.43 on the TSX Venture.
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