North American mining company Ur-Energy has signed a uranium supply agreement with a nuclear operating company based in the US.

Under the terms of the agreement, Ur-Energy will deliver between 200,000 and 300,000 pounds of uranium concentrate every year in a multi-year schedule commencing in 2017.

The average delivery price under the deal is consistent with the current published Long-Term U3O8 price indicators.

Ur-Energy CEO Wayne Heili said, "This supply arrangement is an important component of our overall growth strategy as it contributes to the future financial viability of our U.S. based uranium mining operations."

The company said it intends to commit a pre-determined portion of the expected uranium production capacity from its first uranium project, Lost Creek, in long term supply agreements with North American nuclear utilities at prices that will ensure the financial viability of the project.