enCore Energy (TSXV: EU) might have a slight headache on its hands following the midterm elections that occurred yesterday. In particular, a local ballot measure within Fall River County might cause some problems for the company.
The Fall River County has seen voters approve of a ballot measure that seeks to declare that uranium mining is a public nuisance. The measure, which was passed with 56% of voters saying yes, seeks to bar the practice of mining for uranium within the county. All precincts are said to be fully reported.
The measure in particular was directly aimed at Powertech USA, a subsidiary of enCore Energy, where the firm holds its Dewey-Burdock uranium project. The company is currently looking to develop an in-situ mine on the property, with locals concerned about the impact on the local water table as a result of the potential mine. Locals have attempted recently to challenge federal and state permits that have been granted in court, however the most recent decision by the courts fell in favor of enCore.
It is currently unclear what the measure means for the project, given that the project has already been granted underground injection control permits by the US EPA in October 2020, while in 2014 the project received a Source and Byproduct Materials License from the US Nuclear Regulatory Agency. The project is said to still require approvals for construction and operation of the project, which have been applied for with the State of South Dakota as well as with the Bureau of Land Management.
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States’ Attorney Lance Russell however is said to have told the Fall River County Board of Commissioners that the County in fact does not have the power to act on the measure, given that they do not have authority over the State. It is unclear at this point whether the County will act on the measure.
enCore Energy last traded at $3.27 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
