Friday, June 24, 2011 2:54:29 PM
Uranium Energy Corp. recently announced that the company has signed a long term contract to supply a uranium compound to an unidentified customer.
Uranium Energy Corp. said that the contract calls for the company to deliver 300,000 pounds of triuranium octoxide (U3O8) over a three year period beginning in August 2011. There is no set delivery schedule in the contract and the company will receive current market prices at the time of delivery.
Uranium Energy Corp. plans to utilize its Hobson processing facility to fulfill the terms of the contract. The Hobson plant is located in Karnes County, Texas, and underwent a complete refurbishment in 2008.
The plant is designed to receive uranium resin from satellite mining operations located in south Texas and process it into triuranium octoxide for shipment to customers. Triuranium octoxide is one of the main ingredients of yellowcake, a concentrated uranium powder used in the preparation of fuel rods for use in nuclear reactors.
The Hobson plant is currently receiving uranium resin from the Palangana mine, which started up production in November 2010. The Palangana mine is located on 6,200 acres approximately 100 miles south of the Hobson plant.
Uranium Energy Corp. estimates that the mine contains measured and indicated resources of 1.06 million pounds of uranium in two separate production areas.
For more information on the company, go to www.uraniumenergy.com
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