NexGen inks two agreements with First Nations

NexGen Energy (TSX: AM; NYSE: NXE) recently signed two benefit agreements with First Nations affected by the proposed development of its Rook I uranium project near the southwest rim of the Athabasca Basin in Saskatchewan.

The project is located on traditional territory of the Buffalo River Dene Nation (BRDN) and the Birch Narrows Dene Nation (BNDN). The company has signed an impact benefit agreement with the BRDN and a mutual benefit agreement with the BNDN. The agreements were developed out of the study agreements signed in 2019.

The agreements formalized the negotiations with both communities to identify potential impacts to treaty rights and socio-economic interests. NexGen said in a release that the agreements “do not abrogate, extinguish or constitute the abandonment of any existing Aboriginal, inherent or treaty rights the Nations may have.”

Development of the Rook I project will begin with the Arrow uranium deposit. NexGen released the feasibility study in February, based on a uranium oxide price of US$50 per lb. It estimated an after-tax net present value (8% discount) of $3.47 billion, an after-tax internal rate of return at 52.4%, and an after-tax payback period of 0.9 year. A total initial capital cost of $1.3 billion will create a mine and plant capable of producing 28.8 million lb. uranium oxide in each of the first five years.

With a mine life of 10.7 years, the Arrow deposit will provide a feed grade of 2.37% uranium oxide to a 1,300-t/d processing plant. There are 2.2 million measured and indicated tonnes of resources grading 4.35% and containing 256.7 million lb. of uranium oxide.