Peninsula Energy Signs Offtake Deal With Utility Company

Peninsula Energy (ASX:PEN) revealed it had inked an additional uranium concentrate sale and purchase agreement with a US power utility. Delivers of the concentrate will take place in 2016 and continue through 2024 with 912,500 pounds of uranium getting delivered.

According to the press release:

Deliveries of uranium concentrate under the new agreement will commence in 2016 and continue through until 2024. Up to 912,500 pounds of uranium will be delivered by Peninsula under the new agreement. The agreement contains a base price that is consistent with the current Term contract price reported by uranium industry commentators (UxC and TradeTech) during November 2014. Escalation is applied to the base price on a quarterly basis over the term of the contract, commencing in the first quarter of calendar year 2015. Other terms and conditions of the agreement reflect industry standards.

Gus Simpson, executive chairman, said:

We are very pleased to secure this additional sale agreement. Combined with the existing 2011 sale & purchase contract this contract provides Peninsula with additional revenue security as we bring the Lance Projects into production in 2015.

Click here to read the Peninsula Energy Limited (ASX:PEN) press release