enCore Energy Corp. (“enCore” or the “Company”) (NYSE American:EU; TSXV:EU) announced today the completion of the sale of the Marquez-Juan Tafoya Uranium Project to Anfield Energy Inc. (“Anfield”) (TSX.V:AEC; OTCQB:ANLDF) for aggregate consideration of C$5,000,000 payable in cash and 185,000,000 common shares of Anfield.
The deemed value of the share consideration at the time of closing is C$9,250,000 (based on a share price of C$0.05). A total of C$4,000,000 of the cash payment was received on closing, and a further C$1,000,000 is payable by September 25, 2023.
William M. Sheriff, Executive Chairman stated: “The sale of the Marquez-Juan Tafoya Uranium Project represents the third successful transaction in enCore’s ongoing program of divesting established quality uranium assets that are not in its production pipeline.
This transaction provides us with both cash and participation as a significant shareholder in one of only three licensed conventional uranium mills in the United States. As always our focus remains on advancing our Rosita and Alta Mesa In-Situ Recovery Uranium Central Processing Plant, where we remain on track, back into production in 2023 and early 2024 respectively.”
The transaction was completed pursuant to a share purchase agreement dated June 5, 2023 (EU NR June 6, 2023). Under the terms of the agreement, on closing Anfield acquired all of the outstanding shares of the Company’s wholly owned subsidiary, Neutron Energy Inc., which holds the Marquez-Juan Tafoya Uranium Project as its sole asset.
Under the terms of the agreement with Anfield, enCore maintains the right to one seat on the board of directors of Anfield, for as long as the Company holds at least 10% of the issued shares of Anfield. Mr. Eugene Spiering, with extensive experience in conventional uranium, is the Company’s initial board appointee. enCore also has the right to maintain its percentage equity interest in Anfield in subsequent share issuances for so long as it holds at least 10% of the outstanding shares of Anfield.
Red Cloud Securities Inc. acted as an advisor in connection with the transaction.
Disclosure pursuant to National Instrument 62-103
enCore is holding the shares of Anfield for investment purposes, and may, depending on market and other conditions, increase or decrease its beneficial ownership of the Company’s securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.
Immediately prior to the transaction, enCore held no common shares of Anfield.
The disclosure respecting enCore’s shareholdings contained in this news release is made pursuant to National Instrument 62-103 and a report respecting the above acquisition will be filed with the applicable securities commissions and will be available for viewing at www.sedar.com.
A copy of the report may also be obtained by contacting William M. Sheriff, Executive Chairman, 361-239-5449, or at [email protected].
About enCore Energy Corp.
enCore Energy Corp., America’s Clean Energy Company™, 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 using 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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