Plateau Uranium Inc has signed a non- exclusive, non-binding, Letter of Intent (LOI) with a European-based commodity trading company representing the first potential sale of a portion of future production from the company’s Macusani Plateau uranium project in southeast Peru.
Indicative terms:
- Deliveries of 2 Mlb U3O8 over initial 5 years of production, with potential for increased annual volumes and a 2-year extension option
- Average pricing above $42/lb U3O8
- Hybrid contract model under discussion with a mix of fixed and market-related pricing
- Market-related portion includes floor prices well above estimated operating costs, and current spot market forecasts as well as attractive ceiling prices in line, or above present future forecasts that both increase with time
- Plateau Uranium and Curzon have agreed to work towards negotiating a possible uranium offtake agreement over the next 12 months as the Macusani project develops.
Ted O’Connor, CEO of Plateau Uranium, commented: “We are extremely pleased to have entered into this LOI with Curzon as another step to ensuring the economic success of the Macusani project. We have projected cash costs for uranium only, excluding any lithium co-production value, of $17.28/lb U3O8 produced. At $40 uranium price, our uranium project has excellent potential economic returns with a post-tax NPV8 of $360 million and an IRR of 29.2% with a payback period of 2.5 years. The uranium prices under discussion average higher than this, which is extremely positive for the future development of the project.”
Plateau Uranium is a Canadian uranium exploration and development company focused on its properties on the Macusani Plateau in southeast Peru. It controls all reported uranium resources known in Peru, significant and growing lithium resources and mineral concessions covering over 91,000 ha situated near significant infrastructure.
