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

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Uranium Royalty completes acquisition of US Uranium royalty portfolio from Anfield Energy. (Credit: WikiImages from Pixabay)

Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) (“URC” or the “Company”) is pleased to announce the completion of its previously announced acquisition from Anfield Energy Inc. (“Anfield”) of a portfolio of royalties on U.S. projects consisting of:

U.S. Conventional Mining Royalty Portfolio: a 2% net smelter return royalty on portions of the San Rafael Project, located in Utah, USA and operated by Western Uranium & Vanadium Corp.;
a 2 – 4% sliding scale gross value royalty on portions of the Whirlwind Project, located in Colorado and Utah, USA and operated by Energy Fuels Inc. (“Energy Fuels”); and
a 1% gross value royalty (applicable to uranium and vanadium sales) on portions of the Energy Queen Project, located in Utah, USA and operated by Energy Fuels.

U.S. In-Situ Recovery (ISR) Royalty:a 2 – 4% sliding scale royalty on portions of the Dewey Burdock Project located in South Dakota, USA and operated by enCore Energy Corp.

Cash consideration of US$1.5 million was paid by the Company at closing.

Physical Uranium Holdings
The Company further announces that it has made additional uranium concentrate purchase commitments totaling 200,000 pounds U3O8 at an average cost of US$51.00 per pound.  Deliveries will be made in February 2023 to URC’s storage account with Cameco Corporation in Ontario, Canada. At the time of delivery, the purchase will be funded with cash on hand and available credit.

With these additions, URC will hold physical uranium inventories of 1,748,068 pounds, acquired at a weighted average cost of US$43.32 per pound. Based on the daily spot price published by TradeTech LLC on February 6, 2023 of US$50.50, the value of such holdings was US$88 million (C$118 million), representing an increase of 17% since the acquisition dates.

As previously disclosed, URC has also contracted future purchase commitments of 500,000 pounds U3O8 through 2025 at a weighted average price of US$47.71 per pound.

Quarterly Update
As at January 31, 2023, the Company had approximately C$147 million in cash, marketable securities and physical uranium holdings. During the three months ended January 31, 2023, the Company distributed 1,962,702 common shares pursuant to its previously announced at-the-market equity program through the facilities of the TSX Venture Exchange and NASDAQ for gross proceeds of approximately C$7.0 million.

The Company plans to file its unaudited financial statements and related management’s discussion and analysis for the three and nine months ended January 31, 2023 on or about March 16, 2023.

Source: Company Press Release