Madison CEO and executive chairperson Duane Parnham
Canadian uranium exploration and development company Madison Metals has announced that, since November last year, it has successfully received funds for the first tranche of its forward sales agreement with financial advisory firm Sanmiguel Capital Investment at an average price of $68/lb, well above the contractually established $45/lb price floor.
Sanmiguel is assisting with the administration of the agreement.
Madison said on January 22 that this achievement underscored the uranium agreement’s effectiveness in securing favourable pricing.
As there is no price ceiling, Madison noted that the forward sales agreement provided upside potential for advantageous pricing as the market continues to surge. The significant flexibility of the forward sales agreement allows the company to adapt and capitalise on the uranium market’s upward price trajectory.
Madison said it was well positioned to take advantage of the strong performance of the current uranium market, with an 88% spot price increase last year and an additional 10% increase in the first two weeks of this year.
“Our strategic mining assets in Namibia . . . backed by decades of expertise, position us as a leading upstream explorer and developer that can fast-track to uranium production.
“We're not just creating value for our shareholders. We're setting the pace for the future of sustainable energy. This is more than a market trend – it's a fundamental shift in the global energy market, and Madison is positioned to be a major player at the heart of it," Madison CEO and executive chairperson Duane Parnham said.