January 5, 2022
enCore Energy Corp. (TSXV:EU, BUY, C$2.75 target, David A. Talbot) completed the previously announced acquisition of Azarga Uranium Corp. (TSX:AZZ, Not Rated) in an all-stock deal (read more). We believe the arrangement has created a leading US ISR company, with ~100M lb U3O8 of M&I+I resources, ~78M lb of historical resources, near-term production potential, sales contracts covering the production, and an ever-growing extensive pipeline of near- to mid-term ISR development projects in Texas, South Dakota, Wyoming, and New Mexico. While the company continues to advance its development projects, we highlight that the rising U3O8 prices along with a portfolio of high-quality ISR projects could unfold potential production growth opportunities for the company, as we outlined in our initiation report. With the acquisition now behind it, we expect 2022 to be a catalyst-rich year for the company with key catalysts being: 1) refurbishment of the Rosita processing plant in Texas (Q2/22) (read more), 2) resource expansion and wellfield drilling at Rosita (underway), 3) NI 43-101 compliant resource estimates aimed at reclassification of ~78M lb of historical resources, 4) non-core asset divestment, 5) permitting of the Dewey Budrock project in South Dakota and the Gas Hills project in Wyoming, and 6) development updates from the Aladdin and Dewey Terrace projects in Wyoming. Read more
