January 10, 2023
enCore Energy Corp. (TSXV:EU, BUY, C$8.25 target, David A. Talbot) announced that the acquisition of the Alta Mesa in-situ recovery (ISR) project is scheduled to close by Feb. 15/23, subject to final stock exchange approval. The company has signed a definitive agreement with Energy Fuels Inc. (TSX:EFR, BUY, C$15.60 target, David A. Talbot) to acquire Alta Mesa for US$120M, which included US$60M in cash, and US$60M through a promissory note, with a two-year term at 8%. We view the acquisition positively as it adds a third fully licensed and constructed ISR facility with a capacity of 1.5M lb U3O8 p.a. to its existing Rosita and Kingsville Dome facilities, bringing total annual processing capacity in Texas to 3.6M lb U3O8. Once closed, enCore will increase its total mineral resource by ~20%, adding ~20M lb U308, to ~100M lb U308 (read more). Meanwhile, we expect focus to continue on advancing its 100%-owned 800ktpa U3O8 Rosita Central uranium ISR processing plant in Texas, which we expect to begin production in Q2/23. Read more
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enCore Energy Corp. – TSXV:EU – 1,2,3
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