By Adriano Marchese
EnCore Energy said Wednesday that it will sell a 30% stake in its uranium project in south Texas to Australian uranium producer Boss Energy for $60 million and a $10 million investment in the company.
EnCore, a Toronto-listed uranium producer, said it has entered into a master transaction agreement with Boss Energy to sell the ownership interest in the in-situ recovery Alta Mesa project, creating a joint venture for the project.
As part of the agreement, EnCore also will receive a loan of 200,000 pounds of uranium for commercial use over the next year, and the two companies will form a strategic collaboration on the use and joint development of enCore’s proprietary prompt fission neutron technology for exploration and production.
The company said the transaction provides the financial capacity to significantly accelerate its uranium production pipeline across the state through the development of multiple satellite operations.
Chief Executive Paul Goranson said the funds also will allow the company to ramp up both exploration and development drilling across the rest of its company’s U.S. portfolio as well.
For the $10 million private placement, enCore plans to issue shares at $3.90 apiece to Boss Energy.
The transaction is expected to complete in February of next year.
Write to Adriano Marchese at [email protected]
Read the full article here