Uranium Royalty (UROY) Acquires Additional Royalty Interest on One of Largest Undeveloped ISR Uranium Projects in US
PRISM New Energy Index company, Uranium Royalty Corp (UROY) has signed an agreement to acquire additional royalty interest in a portion of the Churchrock uranium project which is indirectly owned by Laramide Resources, Ltd. in New Mexico. This project and its nearby properties represents one of the largest and highest-grade undeveloped ISR uranium projects in the US.
The royalty is structured as a Gross Overriding Royalty of 6% “Mine Price,” which anticipates the recovery of reasonable and actual costs to transport the mineral to the final point of sale. The royalty covers the 10 patented mining claims in the Section 8 property (640 acres) that comprise New Mexico Mineral Survey 2220 on the Churchrock Project.
The total consideration payable by the Company for this transaction is $3.5M. This will be satisfied upon closing by paying $1.75M in cash to each of the vendors, who each own an undivided one-half interest in the royalty. The purchase price will be funded from the Company’s cash and liquid assets on hand.
Scott Melbye, Chief Executive Officer of URC, stated: “Laramide’s Churchrock Project represents one of the largest undeveloped ISR assets in the United States. We’re very pleased to acquire an additional royalty on this asset, as it represents an important future source of U.S. uranium production.”
Closing of the transaction is subject to customary closing conditions and is expected to occur before the end of July 2024.
