enCore Energy Corp announced that it has been awarded a contract to sell 100,000 pounds of natural uranium concentrates (U3O8) to the US government, at $70.50 per pound, under the new Uranium Reserve Program.
The uranium development company said it is one of five qualified US-based operators, with existing licensed facilities, approved to sell domestically sourced natural uranium to the US government's Uranium Reserve Program.
“As we have seen in 2022, global supply chains for nuclear fuel have been severely disrupted by geopolitical events and the need for a domestic and secure supply chain for nuclear fuel is a stark reality,” enCore Energy CEO Paul Goranson said in a statement.
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“The proceeds from this contract will do exactly as intended and be invested directly into advancing new production from our South Texas Rosita Project in 2023,” Goranson added.
enCore noted the uranium purchase will help the government establish a strategic uranium reserve and represents the first uranium purchase by the US government in 40 years.
It added that the Uranium Reserve is intended to be a backup source of supply for domestic nuclear power plants in the event of significant market disruption and provide support for restarting uranium production in the US.
As well, the company’s announced its application for membership in the US Department of Energy's newly-created HALEU (High Assay Low Enrichment) Consortium, noting enCore's prominent private land holdings offer a competitive advantage as a supplier of natural uranium for the program that specifically excludes uranium produced from Federal Lands.
enCore stated it is uniquely qualified to supply uranium for the program with near-term production coming from South Texas from two, soon to be three, fully licensed in situ recovery (ISR) production facilities located on privately-owned surface and mineral properties.
enCore Energy is the most diversified ISR uranium development company in the US and recently announced it entered into a definitive agreement to acquire the Alta Mesa ISR uranium project.
The company is focused on becoming the next uranium producer from its licensed and past-producing South Texas Rosita Processing Plant by 2023.
Contact Sean at sean@proactiveinvestors.com