12.01.2018 Curzon Uranium Trading signs a long term off-take agreement with Uranium Industry
Curzon Uranium Trading (“Curzon”) is pleased to announce that it concluded its second long term off-take contract in the uranium industry. At the end of November 2017 Curzon signed a sales and purchase agreement with Czech Republic based Uranium Industry A.S. (“UI”). UI is the majority shareholder of the Gurvan Saihan Joint Venture in Mongolia, which is the project company responsible to develop the existing uranium concentrate licences. The project comprises 4 fully granted mining licences (Hairhan, Haarat, Gurvansaihan and Ulziit) with a total M&I resource of 95M lbs. The off-take contract comprises a total volume of 4.75M lbs. over a period of 7 years starting, at the earliest, in 2020. The contract contains a combination of fixed pricing at an average price of $35 and market linked pricing with a balanced and competitive floor and ceiling price. Part of the total contractual volume comes in the form of additional quantity options. The off-take contract has been submitted and was fully countersigned by Euratom at the end of December 2017.
UI will also rely on Curzon’s expertise to help with further marketing of the future production and provide uranium insight.
UI was awarded the project mining licenses by Mineral Resources and Petroleum Authority of Mongolia in September 2016 with the support of both the Czech and Mongolian governments through an intergovernmental agreement. UI has since focused on the development of the Project through cooperation with the government and its industrial partner, NAC KazAtomProm. The uranium resource is hosted in a siltstone and sandstone geology which makes it perfectly amenable to in situ leaching. UI commissioned a leading uranium mining research and engineering company to prepare a TEO (the equivalent to a DFS according to the Russian mining project classification)as well as a pre-EPCM study for a new and cost effective ISR mining solution to be released in the next few months. Initial study results show all in operational cost well below $20 per lb. and a limited capital expense to bring the Project into the first stage of production by 2019.