ASX and Toronto-listed uranium producer White Canyon Uranium (ASX: WCU, TSX-V: WU) has clinched a sales and agency agreement with Denison Mines (TSX: DML, NYSE AMEX: DNN) to market uranium concentrate from White Canyon's Daneros Mine in Utah.
This will commence on 1 November 2010.
As one of few listed uranium companies producing uranium on the ASX or TSX exchanges, sales of concentrate will be sold to the spot market from White Canyon's mine could commence as early as December 2010. This would provide cash flows and revenues for WCU which could provide a shot in the arm for the WCU valuation as sales and revenues increase.
This is a milestone for WCU and is ahead of the company’s previous production plan. The Company began mining ore in 2009 after receiving the first mining permit issued in Utah in 30 years.
Denison’s White Mesa Mill is expected to commence toll milling of the Company’s ore in the coming weeks with an expected yield in excess of 200,000 pounds of U308.
White Canyon listed in March 2008 as an advanced uranium exploration and production company holding 100% interest in multiple mining projects in southeast Utah, through its subsidiary, White Canyon Uranium, North America, comprising of approximately 15,500 acres of mining claims and mineral leases.
Denison Mines Corporation is a uranium producer and operates the only Uranium/vanadium mill in the United States, the White Mesa Mill, near Blanding Utah.
Disclosure: No positions