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Peninsula Energy has signed a new sales agreement for the supply of uranium yellowcake through its wholly owned subsidiary Strata Energy, operator of the Lance projects in Wyoming, US.

The agreement will see Peninsula sell 1.2 million pounds (Mlbs) of uranium over a six-year period to European nuclear fuel buyer Synatom. It is expected to start in 2028.

The contract is estimated to generate gross revenue of $US88 million–$US117 million over the term.

“The strength of the uranium market dynamics in recent months has allowed Peninsula to consider adding sales commitments with improved pricing structures to our sales portfolio,” Peninsula managing director and chief executive officer Wayne Heili said.

“We are pleased to be establishing this relationship with another significant utility customer.”

This new sales agreement brings Peninsula’s total contractual sales obligation over the upcoming 10-year period to 6.0 Mlbs.

In its life of mine model, Peninsula projected production levels of approximately 14.8 Mlbs of uranium during the same period.

“This new long-term agreement adds financial security to our uranium production facilities while capitalizing on the current robust price environment,” Heili said.

The Lance project is one of the largest near-term uranium development projects in the US. It is currently transitioning to a low cost and environmentally friendly operation.

Once back in production, Lance will establish Peninsula as an independent end-to-end producer of yellowcake.