Yellow Cake PLC

Exercise of Option by Uranium Royalty Corp.

RNS Number : 9507T
Yellow Cake PLC
30 March 2021

30 March 2021



Yellow Cake plc ("Yellow Cake" or the "Company")


Exercise of Option by Uranium Royalty Corp.


Yellow Cake, a specialist company operating in the uranium sector, with a view to holding physical uranium for the long term, announces that Uranium Royalty Corp ("URC") has elected to exercise its option to purchase US$10 million worth of U3O8 from Yellow Cake.

URC will purchase 3 48,068 lb of U3O8 from Yellow Cake at US$28.73/ lb. Delivery is expected to take place on or around 30 April 2021.  The 348,068 lb of U3O8 to be acquired by URC as part of this option exercise was purchased by Yellow Cake in the spot market.

As part of  the subscription agreement entered into at the time of the Company's IPO, the Company granted URC an option to acquire between US$2.5 million and US$10 million worth of U3O8 per year in each of the nine calendar years commencing on 1 January 2019, up to a maximum aggregate amount over such nine year period of US$31.25 million worth of U3O8.

The Company's total U3O8 holding after deducting the URC purchase is 13.0 million lb, including 100,000 lb of U3O8 recently purchased by the Company.



Yellow Cake plc



Andre Liebenberg, CEO

Carole Whittall, CFO


Tel: +44 (0) 153 488 5200






Nominated Adviser and Joint Broker: Canaccord Genuity Limited


Henry Fitzgerald-O'Connor

James Asensio


Georgina McCooke

Tel: +44 (0) 207 523 8000






Joint Broker: Berenberg


Matthew Armitt

Jennifer Wyllie


Varun Talwar

Detlir Elezi


Tel: +44 (0) 203 207 7800






Financial Adviser: Bacchus Capital Advisers

Peter Bacchus

Richard Allan

Tel: +44 (0) 203 848 1640





Investor Relations: Powerscourt



Peter Ogden

Linda Gu


Tel: +44 (0) 7793 858 211






Yellow Cake is a London-listed company founded and established by Bacchus Capital and headquartered in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding physical triuranium octoxide ("U3O8"). It may also seek to add value through the acquisition of uranium royalties and streams or other uranium related activities. Yellow Cake seeks to generate returns for shareholders through the appreciation of the value of its holding of U3O8 and its other uranium related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U3O8 with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 9.76 million lb of U3O8, all of which is held in storage in Canada and France. 



Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U3O8, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.


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