07:14 AM EDT, 07/29/2024 (MT Newswires) -- Uranium Royalty ( UROY ) on Monday said it has entered into a binding royalty purchase agreement to acquire an additional royalty on a portion of the Churchrock uranium project in New Mexico.

The project, owned indirectly by Laramide Resources ( LMRXF ) , is an advanced stage, in situ recovery (ISR) uranium project in the Grants Mineral Belt. The Churchrock project and nearby properties represent one of the largest and highest-grade undeveloped ISR uranium projects in the U.S., according to Laramide.

The royalty is structured as a gross overriding royalty of 6% "mine price," which anticipates recovery of costs to transport the mineral to the final point of sale. The royalty covers the 10 patented mining claims in Section 8 property on the Churchrock project.

The company will pay US$3.5 million that will be funded from cash and liquid assets on hand.

The deal is expected to close by the end of July.