North American uranium mining company Ur-Energy Inc. has signed a uranium supply agreement with an unnamed US nuclear operating company.

The agreement calls for deliveries of between 200,000 to 300,000 pounds of uranium concentrate (77-115 tU) a year from 2017.

The average delivery price under the agreement "is consistent with the current published long-term U3O8 price indicators," Ur-Energy said. The long-term price indicator was $57 as of 31/05/2013, according to TradeTech and Ux Consulting.

Ur-Energy said that it "plans to commit a pre-determined portion of the expected uranium production capacity from its Lost Creek Project in long term supply agreements with North American nuclear utilities at prices that will ensure the project’s financial viability."

Lost Creek comprises six projects covering a total of approximately 42,000 acres. Production is expected to start at the Wyoming site "in the second half of 2013." The processing facility will have a capacity of two million pounds per year.


Photo: Lost Creek (source Ur-Energy)