Uranium Royalty Corp. to Acquire Royalties on McArthur River and Cigar Lake Mines

摘要

Uranium Royalty Corp. (URC) has agreed to acquire existing royalty interests on the McArthur River and Cigar Lake Mines in Saskatchewan, Canada, for US$10 million cash and $1.5 million in common shares of URC. The royalties include a 1% Gross Overriding Royalty on an approximate 9 percent share of uranium production derived from Orano's ownership interest (~30%) in the McArthur River Mine. Included in the royalty is the option to take physical uranium "in kind" by giving a 45-day notice. The Cigar Lake/Waterbury Project royalty is 20 percent Net Profits Interest on a 3.75 percent share of overall uranium production, derived from Orano's ownership interest (37.1%). This royalty rate adjusts to 10 percent in the future upon production of 200 million pounds from the royalty lands (93 million pounds has been produced to date).