07:44 AM EDT, 03/13/2024 (MT Newswires) -- Ur-Energy Inc. ( URG ) said Wednesday that it agreed to build its Shirley Basin uranium project in Wyoming, citing the positive outlook for uranium.

The company noted that its uranium sales contract book is growing while also flagging the strong uranium market price and expectations of higher demand for uranium as nations move toward clean nuclear power.

Ur-Energy ( URG ) said the satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and a production capacity of up to 1.0 million pounds of uranium per year.

The company said the estimated time to finalize designs, order materials and construct the satellite plant and initial wellfield is about 24 months.

"The decision to build out our Shirley Basin project is a major milestone for our company as it will nearly double our annual permitted mine production capacity to 2.2 million pounds while diversifying our supply," CEO and Chairman John Cash said.

The company gained 2.7% at last look in US pre-market trading on Wednesday.