UEC, which is advancing in-situ recovery uranium projects in Texas and Wyoming, said on Wednesday that it had entered into initial agreements totalling $10.9-million to buy 400 000 lb of drummed uranium.

The physical uranium initiative would not only provide balance sheet strength as prices appreciate, but would also provide greater marketing flexibility for utilities, while freeing up domestic mine production for US-specific opportunities.

One such opportunity is participating in the $1.5-billion US uranium reserve, which the Department of Energy announced last year as a measure to assist US uranium miners, UEC said in a statement.

"With $65.8-million in cash and equity holdings, UEC has the balance sheet strength to lead US uranium production higher at the most critical time for the domestic industry since the inception of the civilian nuclear power programme began in the 1950s,” commented CEO and president Amir Adani.

Earlier this week, Canadian uranium project developer Denison Mines announced a $75-million bought-deal funding initiative to fund the strategic acquisition of physical uranium that it intends to hold as a long-term investment to support the future financing of the Wheeler River uranium project.

Denison aims to accumulate about 2.5-million pounds of uranium oxide (U3O8).

London-listed Yellow Cake, a specialist company operating in the uranium sector, on Monday elected to exercise its full 2021, $100-million uranium purchase option with Kazakhstan major Kazatomprom at a price of $28.95/lb. The Kazatomprom option represents 3.5-million pounds of additional U3O8 which will be delivered into storage as part of Yellow Cake`s long-term buy and hold strategy.

In addition, Yellow Cake agreed to purchase a further 440 000 lb at $27.34/lb and will take delivery of the additional U3O8 during March 2021.