Western Uranium & Vanadium (CSE: WUC; US-OTC: WSTRF) has signed an agreement to buy 125,000 pounds of uranium concentrate at the current market price for delivery before the end of June 2022
The company said the deal “has the potential to enhance the balance sheet beyond the purchase cost through uranium price appreciation,” and the physical uranium can be “held as a long-term investment.”
The decision was motivated by “an acquisition cost substantially below average global uranium production costs,” the company stated in a news release, adding that the idea was first discussed in mid-2020 “as markets began to acknowledge the growing uranium supply-demand imbalance.”
A uranium-vanadium seam at Western Uranium’s Sunday mine complex, in western San Miguel County, Colorado. Credit: Western Uranium.
“A decade of oversupply has stifled the development of new uranium mines which has created an undersupply of uranium/nuclear fuel for the next decade,” it said in a press release on June 2.
Western Uranium & Vanadium’s flagship project is the Sunday complex, which has five mines: Sunday, Carnation, St. Jude, West Sunday and Topaz. The complex is in Colorado, and according to the company, is permitted and developed and “production ready.” The Sunday complex was fully developed in the 1970s by Union Carbide, which spent about US$50 million on the project, the company says.
Western Uranium & Vanadium was founded in 2014 with the mission of acquiring uranium property packages.
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