NexGen Energy has secured a uranium offtake contract with a US utility company to deliver one million pounds (mlb) of uranium annually over a five-year period.
This contract is set to commence in the first year of commercial production from NexGen's Rook I Project, located in the southern area of the Athabasca Basin in northern Saskatchewan, Canada.
This latest agreement, which follows initial sales contracts in December 2024, highlights the Rook I Project's importance in the future uranium supply chain.
The contract comes at a time of heightened concerns over sovereign and technical risks in current uranium production sources globally.
The new contract effectively doubles NexGen's existing contracted volumes to more than 10mlb, providing the company with significant leverage around potential future uranium price increases.
With the Arrow Deposit having 229.6mlb of uncontracted reserves, NexGen is positioned to optimise future sales, according to the company.
The contract incorporates market-related pricing mechanisms, which will be applied at the time of delivery.
This strategy aligns with NexGen's approach to offtake agreements, ensuring that pricing reflects market conditions at the time of each transaction.
NexGen founder and CEO Leigh Curyer said: "NexGen's stated strategy simply optimises the value and return on each pound produced. It reflects Rook I's relative technical simplicity and high production volume certainty, which provides our utility clients confidence in the delivery of their future fuel requirements. At the same time, it provides NexGen shareholders unprecedented industry-leading leverage to prices at the time of those deliveries.
“The team is managing a substantial increase in offtake activity and negotiation, reflecting NexGen as a future cornerstone of the global nuclear energy market.
“In an era defined by the intersection of energy security and national security, combined with surging demand for electrification, NexGen's role in enhancing energy security and independence for its power utility clients has never been more critical."
