9th Feb 2023 10:31
(Alliance News) - Yellow Cake PLC on Thursday said it has exercised its option to buy 1.4 million pounds of U3O8 uranium at USD48.90 per pound.
The Jersey, UK-based specialist investor in uranium said it informed JSC National Atomic Company Kazatomprom of the purchase after completing a GBP62 million share placing on Tuesday.
Yellow Cake has a 2022 uranium purchase option under its agreement with Kazatomprom, which allows it to purchase USD100 million of U3O8 at an undisturbed spot price from Kazatomprom per year through to 2027.
The company said it proposed the purchase price on January 25, enabling it to complete the share placing and then exercise the option.
The company noted that it expects to take delivery of the uranium in the second half of 2023. The uranium will be delivered into storage as part of the company's long term buy and hold strategy, increasing Yellow Cake's total holdings to 20.2 million pounds of U3O8.
Yellow Cake shares were up 0.2% trading at 414.10 pence per share on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
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