Western Uranium Corporation Shareholder Update
2017-08-21T20:40:20Z
Western Uranium Corporation Shareholder Update
TORONTO and NUCLA, Colo., Aug. 21, 2017 (GLOBE NEWSWIRE) -- Western Uranium
Corporation (CSE:WUC) (OTCQX:WSTRF) (“Western” or the “Company”) is pleased to
provide an update to shareholders and the market.
Western is investigating re-starting its vanadium-rich mines as the result of
the higher vanadium price, currently $9.50 per pound. The 2017 forecast global
production of vanadium is about 80,000 tonnes compared to the forecast
consumption of 88,000 tonnes, implying a supply deficit of approximately 8,000
tonnes in the global vanadium market. As vanadium inventories have been
depleted, global steel mills are competing against the growing vanadium redox
battery (VRB) industry for consistent vanadium supplies. The VRB market could
represent another 7,000 to 30,000 tonnes of vanadium demand per annum over the
next ten years.
The reason for the decrease in supply and increase in price of vanadium is the
Chinese government forcing some factories and iron ore mines to curtail
operations to reduce air pollution. Vanadium is a unique commodity market, as
China is both the largest producer and consumer of vanadium. China accounts
for about 45% of the world’s vanadium production while Russia and South Africa
account for approximately another 30% of global vanadium production.
Western has begun discussions on the economics of building a vanadium and
ferro-vanadium processing plant. Ferro-vanadium is a higher value product than
vanadium pentoxide, enhancing margins for the Company and shareholders.
Finally, discussions have begun with potential vanadium offtake partners both
domestically and internationally.
The aforementioned discussions are early stage and the Company will update the
market when further news can be released.
Further, Western also announces it has received a bonus payment of $120,000
from signing an oil and gas lease on one of its properties in a hydrocarbon
rich region. If oil and/or gas is found, the Company will receive a
significant royalty percentage which will be reinvested in the Company’s core
vanadium and uranium mining operations. The oil and gas leasing agreement
allows the Company to retain full property rights to vanadium, uranium, and
other mineral resources.
These strategic positioning decisions are being evaluated relative to cash
flow generation potential. Western is seeking to capitalize on the vanadium
and royalty opportunities to generate meaningful cash flow by optimizing and
advancing the asset package, in spite of the current low uranium price
environment. These actions would have the added benefit of advancing uranium
operations in preparation for when the cycle turns and the market recognizes
the imminent global uranium supply deficit.
About Western Uranium Corporation
Western Uranium Corporation is a Colorado based uranium and vanadium
conventional mining company focused on low cost near-term production of
uranium and vanadium in the western United States and development and
application of ablation mining technology.
FORWARD LOOKING STATEMENTS AND CAUTIONARY NOTE
This news release may contain forward-looking statements that are based on the
Company’s expectations, estimates and projections regarding its business and
the economic environment in which it operates. These statements are not
guarantees of future performance and involve risks and uncertainties that are
difficult to control or predict. Therefore, actual outcomes and results may
differ materially from those expressed in these forward-looking statements and
readers should not place undue reliance on such statements. Statements speak
only as of the date on which they are made.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
George Glasier
President and CEO
Office: 970-864-2125
[email protected]
Russell Fryer
Executive Chairman
Office: 203-340-5633
[email protected]
