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Madison Metals Inc. (CSE: GREN) (OTCQB: MMTLF), an upstream mining and exploration company, reported that its 20-million-pound forward sales agreement, announced in June 2023, goes live today, Thursday. This development comes as the uranium market experiences a robust upswing, with prices soaring over 20% in 2023 to exceed $62 per pound for the first time since 2011.
The uranium market’s resurgence is attributed to strong global supply and demand fundamentals. “This strong market performance is expected to positively influence the valuations of small-cap entities like Madison,” said Duane Parnham, Executive Chairman and CEO of Madison Metals Inc. He also noted that access constraints to physical uranium have directed buyers toward the futures market, a pattern reminiscent of the 2007 setup when the spot price of uranium sharply escalated to $140 per pound.
Madison’s uranium prospects have been handpicked by Mr. Parnham, who has a 22-year track record in Namibia and previously founded Forsys Metals Corp., and by Dr. Roger Laine, formerly of Areva S.A., who was responsible for geological upgrades at Valencia (Pty) Ltd.
The company’s projects are uniquely located next to the operating Rössing Uranium Mine and surrounded by numerous untested uranium occurrences, making them valuable assets in the uranium mining landscape.
The company also announced that it has secured the necessary permits for its maiden drilling program at its Namibian properties. This proactive approach ensures Madison remains agile and responsive to the dynamic uranium market, providing strong support to its forward sales agreement. The drilling program is designed to test existing and new uranium target areas outlined during recent field studies.
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