Funding the Road to Production
Strata Energy (Strata), a wholly-owned subsidiary of Peninsula Energy Limited (Peninsula), is pleased to announce that Peninsula has recently secured A$69.4 million (~US$57 million) to complete stage 1 construction at the Ross Project. With funding now fully in place, Strata will become Wyoming’s next uranium producer upon completion of the initial wellfields and Central Processing Plant (CPP) in 2015.
The stage 1 construction is part of Strata’s scalable plant design, a revised set of development plans to more economically respond to market conditions while capitalizing on one of the largest JORC-code-compliant uranium resources in North America. Under the first stage of construction, Strata will complete the initial wellfields and a reduced, scalable CPP with a production capacity between 500,000 – 700,000 lbs U3O8 per year. While smaller in scale, the initial construction still includes all components for mining, protection, restoration and remediation activities, but is designed to be easily expandable in response to market conditions.
This scaled approach allows Strata to more economically capitalize on current, short-term market conditions, while establishing the infrastructure for future expansion/development – all for the purpose of maximizing return on such a large resource.
Stage 1 construction of the project is the culmination of years of rigorous regulatory permitting and internal due diligence to refine plans, operational requirements and strict permit/license conditions. These requirements embody both Strata’s values and the regulatory stipulations to protect health, safety and the environment at the Ross Project. As Strata proceeds with construction and into production, it will be with continued adherence to all appropriate environmental precautions and under the conditions established by stringent regulatory oversight.
Production: A Boon to Local, State Economies
Funding for construction and production at the Ross Project also marks an important note for the economies of Crook County and Wyoming. Although Strata’s exploration, development and other preliminary activities have generated jobs and revenue, construction and production at the project will have significantly higher economic gains for the local communities and the State of Wyoming.
Stage 1 activities, including purchasing equipment, construction of the plant, and development of wellfields, will generate both jobs and sales tax revenue for the local economy. Plant and facility construction will also generate higher property tax revenues to Crook County. Once Strata initiates production, Wyoming and Crook County will also begin to reap an entirely new revenue stream from the project: generation of severance and ad valorem tax revenue.
In short, securing funding for the project marks a new phase in the economic impacts of the Ross Project. While the construction activities will jump start the economic benefits of the project, the scalable plant design and ability to respond economically to the market will help keep those benefits in the community for the long term.
Strata is proud to continue to grow involvement and benefit in the local communities through the realization of the Ross Project.