Denison signs another long term uranium sales contract
Canadian uranium miner, Denison, has announced it has signed a new long term uranium sales contract to sell 5 million pounds of uranium oxide over 5 years starting in 2011.
TORONTO (Reuters) -
Denison Mines (DML.TO: Quote) has inked a long-term contract to sell 5 million pounds of uranium over five years beginning in 2011, the company said on Monday.
Denison said in a statement it will sell 1 million pounds of uranium per year from its production facilities in the United States and Canada. It did not identify the customer or the financial terms of the deal.
It said the contracted price is a combination of an escalated base price and published market price indicators at the time of delivery.
"In addition to this new long-term uranium sales contract, Denison has three other long-term sales contracts in place, and ongoing discussions with additional prospective clients," the Toronto-based company said.
Spot uranium oxide prices have been in almost steady decline since topping out at $136 a pound in June 2007. Spot prices this week were $42 a pound.
Shares of Denison eased 5.5 percent to C$1.71 on Monday, but are up 185 percent so far in April.
The company agreed two weeks ago to sell 19.9 percent of itself to Korea Electric Power Corp (015760.KS: Quote) (KEPCO) and another 5.1 percent to entities close to Denison Chairman Lukas Lundin. Denison has also agreed to sell 20 percent of its production to KEPCO through 2015.
($1=$1.22 Canadian) (Reporting by Cameron French; editing by Peter Galloway)
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