enCore Energy To Sell Off New Mexico Assets For Mix Of Shares, Royalties, Cash

enCore Energy (TSXV: EU) is selling off certain of its assets within New Mexico. The uranium operator this morning indicated it has entered into an arrangement with Verdera Energy Corp, whom will acquire certain assets from the company in exchange for a mix of cash, shares, and new royalties on the assets.

The transaction will see Verdera acquire a subsidiary holding the Crownpoint, Hosta Butte, Nose Rock, West Largo and Ambrosia Lake-Treeline uranium projects from enCore. In exchange, Verdera is to issue 50.0 million non-voting preferred shares of the company, which equates to a 73% interest in Verdera on a fully diluted basis.

Consideration will also consist of a 2% net smelter returns royalty on all minerals extracted from the properties, except for uranium, while a 2% net proceeds royalty will exist for uranium extracted. A non-refundable cash payment of US$350,000 is also to be made in connection with the transaction.

As part of the share purchase agreement, Verdera will pursue a listing on a Canadian stock exchange by December 10, 2024. As part of this process, 15.0 million shares held by enCore will be converted to common shares and retained by enCore, while the remaining 35.0 million shares will be converted to common shares and distributed to enCore shareholders via a special dividend.

“We believe that our New Mexico projects deserve a dedicated focus, which they do not currently receive inside enCore’s broader portfolio of producing and near-term producing assets. With Verdera, we hope to surface additional value, and to eventually transfer a majority of that additional value directly to shareholders though the distribution of Verdera shares,” commented enCore executive chairman William Sheriff.

The closing of the transaction is expected to occur by March 31, 2025.

Verdera Energy is a private Canadian uranium explorer focused on New Mexico and led by Tim Gabruch, former CEO of IsoEnergy and VP Commercial for Denison Mines.

enCore Energy last traded at $2.23 on the TSX Venture.


Information for this briefing was found via Sedar and the sources 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.

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