Peninsula Minerals has received formal Requests for Product (RFP) from three USA power utilities to provide uranium oxide from its Lance Projects in Wyoming. Peninsula aims to protected the sale of U3O8 at an escalate fixed price, fixed capacity and term for the Lance Projects production, which is planned to commence in 2012. Over the past twelve months Peninsula has occupied key utility and end user groups with the ultimate aim of securing long term sale and purchase agreements for U3O8 and is now responding to the RFP’s it has received.
Gus Simpson, executive chairman, said “as Peninsula advances the permit and DFS we are also negotiating long word sale agreements which will add to the company’s capability to achieve a more attractive funding outcome”. Peninsula’s intention is to safe long-term agreements for more than 50% of its forecast uranium oxide product from Lance. The company expects that these agreements will be put in place between the conclusion of the Definitive Feasibility Study (DFS) and the debt financing preparations being finalised.
Together with the conclusion of the DFS and permit, the securing of lengthy term sale contracts will add to Peninsula’s aptitude to secure favourable project financing terms and maximise the debt component. The next important milestones for the company include submission of key permitting applications as well as a resource upgrade in December 2010, then conclusion of its DFS in January 2011, with a decision to mine likely in February 2011. Peninsula is targeting 17mlb U3O8 in the indicate or better category by December 2010, which will enable conclusion of the DFS with 15mlb of saleable product.
Gus Simpson, executive chairman, said “as Peninsula advances the permit and DFS we are also negotiating long word sale agreements which will add to the company’s capability to achieve a more attractive funding outcome”. Peninsula’s intention is to safe long-term agreements for more than 50% of its forecast uranium oxide product from Lance. The company expects that these agreements will be put in place between the conclusion of the Definitive Feasibility Study (DFS) and the debt financing preparations being finalised.
Together with the conclusion of the DFS and permit, the securing of lengthy term sale contracts will add to Peninsula’s aptitude to secure favourable project financing terms and maximise the debt component. The next important milestones for the company include submission of key permitting applications as well as a resource upgrade in December 2010, then conclusion of its DFS in January 2011, with a decision to mine likely in February 2011. Peninsula is targeting 17mlb U3O8 in the indicate or better category by December 2010, which will enable conclusion of the DFS with 15mlb of saleable product.
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