Source: UrAsia Energy Ltd.
UrAsia Energy Ltd. announces five new sales contracts
Thursday November 9, 12:27 pm ET
Trading Symbol (TSXV: UUU and AIM: UUU)
VANCOUVER, Nov. 9 /CNW/ - UrAsia Energy Ltd. (the "Company" or "UrAsia") announced that it has entered into five additional agreements for the supply of uranium concentrates from its Akdala uranium mine in the Republic of Kazakhstan. The Company has a 70% interest in the Betpak Dala Joint Venture, which has a 100% interest in the Akdala uranium mine "Akdala".
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The new contracts, all with North American utilities, are for the total purchase of approximately 5,750,000 pounds U3O8 for delivery during the period 2007 to 2016. The contract terms range in length from three to nine years; the quantity of material in each new contract ranges from 600,000 pounds U3O8 to approximately 2,200,000 pounds U3O8. All of the new contracts have market related pricing terms. The Company remains an unhedged producer in a market where uranium prices continue to rise as primary supply concerns within the industry continue to escalate (TradeTech Weekly Spot Price Indicator US$60.25 as of November 3, 2006).
The Company's contracts (see News Releases dated, February 27, April 6 and August 2, 2006) represent the sale of 100% of Akdala's annual production for 2006. This includes the additional delivery this year of approximately 600,000 pounds U3O8 to an Asian utility under an existing sales contract which was announced in August. Akdala has been producing at an annualized rate of 2,600,000 pounds U3O8 per annum since April this year.
Commenting on the new sales contracts, Phillip Shirvington, President and Chief Executive Officer, said "UrAsia is experiencing strong demand from North American and European utilities for long term contracts for delivery into an increasingly tight market. As a result, the Company has been able to secure its five new sales contracts in the past month when the market has tightened significantly following primary supply concerns".
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 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.
For further information
contact Investor Relations at 1-866-798-0824 or (604) 608-0824 or visit www.sedar.com. For UK investor enquiries, contact +44 (0) 207 466 5000. For Product Marketing and Sales, contact +303 325 2377
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