Trading Symbol (TSXV: UUU and AIM: UUU)
VANCOUVER, Jan. 11 /CNW/ - UrAsia Energy Ltd. (the "Company" or "UrAsia") announced today that it has entered into an agreement for the supply of uranium concentrates with a major North American nuclear utility.
The Company has a 70% interest in the Betpak Dala Joint Venture, which has a 100% interest in the Akdala operating mine "Akdala" and the South Inkai uranium development project "South Inkai". South Inkai is currently under construction with initial uranium production scheduled for the end of 2007. Akdala has been producing at an annualized rate of 2,600,000 pounds U3O8 per annum since April 2006.
The contract is for the sale of approximately 4,000,000 pounds U3O8 for delivery over a five year period. Quantities range from 250,000 pounds U3O8 to 1,000,000 pounds U3O8 per year. The contract includes market related pricing terms with floor price protection (UxC's Weekly Spot Price Indicator as of January 8, 2007 was US$72.00 per pound U3O8).
The Company's existing contracts (see News Releases dated February 27, April 6, August 2, and November 9, 2006) represent the sale of 100% of Akdala's annual production for 2007, as well as a portion of projected production through to 2011. More than 50% of UrAsia's sales contracts, including five agreements announced in November 2006, include floor price protection. Commenting on the new sales contract, Phillip Shirvington, President and Chief Executive Officer, said "the Company is extremely pleased with the reception it has received in the North American market. This latest agreement, with a prominent member of the nuclear community, represents an important step in establishing UrAsia as a major supplier in the uranium industry".
UrAsia is a Canadian-based uranium producer that offers investors exposure to low-cost, uranium production and growth. The Company creates shareholder value by focusing on the development and operation of low-cost, in-situ leach uranium projects in Central Asia.
UrAsia is listed on the TSX Venture Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange, trading under the symbol UUU on both exchanges.
On behalf of UrAsia Energy Ltd.
"Phillip Shirvington"
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The
foregoing information may contain forward-looking statements relating to
the future performance of UrAsia Energy Ltd. Forward-looking statements,
specifically those concerning future performance, are subject to certain
risks and uncertainties, and actual results may differ materially. These
risks and uncertainties are detailed from time to time in the Company's
filings with the appropriate securities commissions.