Seeking AlphaSeeking Alpha

Uranium Royalty to receive physical uranium from McArthur River

Uranium Royalty (NASDAQ:UROY) +5.1% in Tuesday's trading after saying it elected to receive royalty proceeds from the recently re-started McArthur River mine through delivery of physical uranium, which it said will provide maximum value for shareholders.

Uranium Royalty's (UROY) royalty interest applies to Orano's 30.195% ownership interest in the McArthur River project which is operated by Cameco (CCJ) with plans to produce 15M lbs/year of U3O8 from the operations starting in 2024.

The company also said it completed the indirect acquisition of an existing royalty on the Dawn Lake project in Saskatchewan.

Cameco (CCJ) suspended production at McArthur River and the Key Lake mill in early 2018 due to persistent weakness in the global uranium market; the company restarted the project earlier this month.