Canada-based uranium miner NexGen Energy said on Wednesday it had signed its first agreements with US utility companies to supply five-million pounds of the nuclear fuel ingredient.

Uranium will be supplied from NexGen's Rook I Project currently being developed in Saskatchewan. The company anticipates annual delivery of about one-million pounds per year from 2029 to 2033 subject to the commencement of commercial production.

Travis McPherson, chief commercial officer of NexGen, told Reuters this announcement is in line with the company's strategy to get small contracts in place to effectively backstop debt financing required for the construction of its mine in the Western Canadian province.

Nuclear energy has come into focus in recent years as companies explore alternative sources of power to drive the rapid development of artificial intelligence tools and vast data centers. Russia's temporary ban on enriched uranium to US utility companies highlighted the need to diversify supply from friendly countries. US President-elect Donald Trump's threat to impose 25% tariffs on all exports from Canada, however, has added to the uncertainty around the supply of the commodity.

The US. Energy Information Administration estimates record-high power consumptionin 2024 and 2025.

NexGen Energy is also in discussions with additional US, European, and Asian utilities for similar contracts.

The sales contracts announcement follow the company's completion of an important step of the ongoing federal environmental assessment for the Rook I project.

NexGen is well-positioned to secure financing if the project secures federal approval in 2025, RBC Capital Markets analyst Andrew Wong wrote in a note, adding that the terms of the contract likely "mitigates the risk from potential delays in project start-up."

"Energy demand from reliable sources is increasing by the week with the need to expand existing nuclear energy infrastructure and the construction of power consuming data centres at a time the security of uranium supply is under significant technical and sovereign risk," NexGen CEO Leigh Curyer said.

Shares of the company were up 1.7% to C$11.63.