enCore Energy Corp. (NYSE-American: EU;TSXV: EU) (the “Company” or “enCore”) announced today that it has made its first delivery into one of the Company’s four previously announced contracted uranium sales agreements.
This delivery of 200,000 pounds U3O8 represents the first portion of the annual deliveries into the 5-year agreement (announced on August 4, 2021) which covers 2 million pounds U3O8 of uranium with significant delivery flexibility for market related pricing.
The Company successfully acquired uranium under favorable pricing terms in 2022 from a third party and delivered it into this agreement using current spot market pricing indicators to establish the sales price.
Paul Goranson, enCore Energy Chief Executive Officer said, “As enCore continues to execute on our pipeline to production strategy, it is also as important to execute on our uranium sales delivery commitments.
This first uranium sales delivery demonstrates the flexibility we have built into this supply agreement, managing our uranium inventories as we advance our South Texas in-situ recovery uranium plants towards production.
This delivery is the first of enCore’s supply agreements planned from 2023 through 2030. Our contracting strategy has relied on spot market linked supply agreements with a portion of those agreements providing price ceilings and floors that are inflation adjusted. This assures that our production costs are protected and provides us the ability to realize higher prices that reflect what we believe will be an improving uranium price environment.”
About enCore Energy Corp.
enCore Energy Corp. is committed to providing clean, reliable, and affordable domestic nuclear energy by becoming the next United States uranium producer in 2023. enCore solely utilizes In-Situ Recovery (ISR) for uranium extraction, a well-known and proven technology co-developed by the leaders at enCore Energy.
In-Situ Recovery extracts uranium in a non-invasive process through the use of natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
Uranium production is planned at enCore’s licensed and past-producing South Texas Rosita Processing Plant in 2023, and at its licensed and past-producing South Texas Alta Mesa Processing Plant in 2024.
Future projects in enCore’s production pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming, along with significant uranium resource endowments in New Mexico providing long-term opportunities.
The enCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium operations and the nuclear fuel cycle. enCore diligently works to realize value from other owned assets, including our proprietary uranium database that includes technical information from many past producing companies, from our various non-core assets, and by leveraging our ISR expertise in researching opportunities that support the use of this technology as applied to other metals. enCore is also committed to working with local communities and indigenous governments to create positive impact from corporate developments.
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