Paladin Energy has signed a six-year off-take agreement with a “major utility” to supply 13.73Mlb of uranium between 2019 and 2024. As part of the deal, Paladin will receive a prepayment of US$200 million.
Delivery will be from Paladin’s current African mines (Langer Heinrich in Namibia and Kayelekera in Malawi) and/or upcoming projects.
“Uranium delivered under the long-term contract will be sold at market prices prevailing at the time of delivery bounded by escalating floor and ceiling prices,” Paladin said.
The prepayment of $200 million is to be paid in tranches and completed by 31 January 2013, according to Paladin. The unnamed utility will hold security over 60.1% of Paladin’s Michelin project in Canada, Paladin said.