enCore Energy Sells Off 30% Of Alta Mesa To Fund Uranium Asset Development
enCore Energy (TSXV: EU) has sold off a portion of its Alta Mesa project in Texas in an effort to fund the development of certain Wyoming and Texas projects.
The company has sold a 30% stake in Alta Mesa to that of Boss Energy, an Australia-based ISR uranium producer. The sale has resulted in the formation of a joint venture for the facility, with enCore to act as the project manager. Uranium produced at the facility will be distributed on a pro rata basis.
Alta Mesa, which consists of a fully licensed and constructed ISR operation, is expected to begin production in Q2. Operating capacity amounts to 1.5 million pounds of U3O8 production per year.
The 30% stake was sold in exchange for US$60 million, with Boss Energy also committing to invest US$10 million into enCore as part of the transaction. And to seal the deal, Boss was required to agree to loan enCore up to 200,000 pounds of uranium at 9% interest, which is repayable in twelve months time.
READ: enCore Energy Sells Marquez-Juan Tafoya Uranium Project For $16 Million In Cash And Shares
Equity acquired by Boss under the transaction amounted to 2.6 million shares at a price of US$3.90 per each.
Funds from the transaction are expected to be used to develop multiple satellite uranium operations in South Texas, which will “accelerate the uranium production pipeline,” as well as for the development of the Dewey Terrace, Dewey-Burdock, and the Gas Hills projects in Wyoming.
enCore Energy last traded at $5.26 on the TSX Venture.
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