Uranium Royalty Corp. Acquires Additional Royalty on the Churchrock Uranium Project, New Mexico, USA

Core Viewpoint - Uranium Royalty Corp. has entered into a binding royalty purchase agreement to acquire an additional 6% Gross Overriding Royalty on the Churchrock uranium project in New Mexico, which is considered one of the largest undeveloped ISR uranium assets in the United States [21][8]. Transaction Details - The total consideration for the transaction is US$3.5 million, with US$1.75 million to be paid in cash to each of the two vendors [1]. - The purchase price will be funded from the company's cash and liquid assets [1]. Project Overview - The Churchrock Project is located in the Grants Mineral Belt of New Mexico, approximately 12 miles northeast of Gallup, and is 100% owned by NuFuels, Inc., a subsidiary of Laramide Resources Ltd. [10][21]. - The project has a total inferred mineral resource of 50.8 million pounds U3O8, with 10.22 million pounds U3O8 located in Section 8 [7][11]. Economic Assessment - A preliminary economic assessment estimates a Life of Mine production total of 31.2 million pounds U3O8, with an annual recovery of 975,000 pounds U3O8 from the Crownpoint Central Processing Plant over a mine life of 32 years [4]. - The Life of Mine unit operating cost is estimated at US$27.70 per pound U3O8, assuming a static uranium price of US$75 per pound U3O8 [13]. Legislative Context - Recent bipartisan legislation in the U.S. Congress aims to revitalize the domestic nuclear fuel cycle, including acts to phase out Russian uranium imports by 2028, which supports the acquisition of additional uranium assets [8]. Closing Conditions - The closing of the transaction is subject to customary closing conditions and is expected to occur before the end of July 2024 [9].