Australian
Stock Exchange-listed Paladin Energy confirmed October 26 that a
long-term uranium off-take contract it announced in August is with
Electricite de France.
Paladin
had not divulged the counterparty in the contract when it was first
announced August 15, but confirmed October 26 that the contract for 13.7
million pounds of uranium oxide (U3O8) to be delivered over the years
2019 to 2024 was with EDF.
The
uranium delivered under the contract will be sold at market prices
prevailing at the time of delivery bounded by escalating floor and
ceiling prices, Paladin said.
EDF,
the state-owned French nuclear utility, operates 58 reactors in France
alone making it the single largest nuclear utility in the world.
The
contract involves a prepayment of US$200 million by EDF towards future
deliveries. Paladin said US$50 million had already been paid and a
second tranche for the remaining US$150 million was due by the end of
January.
To
secure Paladin’s obligation to deliver product representing the
prepayment amount, EDF will hold security over 60.1% of Paladin’s
Michelin uranium project in Canada.
The
percentage of Michelin secured will be reduced by joint agreement as
the value of that project is enhanced by Paladin’s ongoing work, Paladin
said. The Michelin security can also be replaced by other appropriate
security, it said.
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