enCore Energy Corp (TSX-V:EU, NYSE-A:EU) said it has completed its acquisition of the Alta Mesa In-Situ Recovery uranium project from Energy Fuels Inc.
The transaction provides enCore with three licensed uranium in-situ recovery (ISR) processing plants and positions enCore as a leading US-focused ISR uranium company with proven management expertise to advance multiple production opportunities within its portfolio.
"Alta Mesa is a key acquisition in enCore's development into the dominant ISR uranium producer in the state of Texas,” William M. Sheriff, the executive chairman of encore said in a statement.
READ: enCore Energy to acquire Alta Mesa uranium project in South Texas from Energy Fuels for US$120 million
“With its more immediate plan of restarting Rosita in later 2023 and greatly expanding its production profile with the start-up of Alta Mesa in early 2024 our goal of becoming a 3 million pound per year domestic producer from a consolidated base of operations within a 100-mile radius of Corpus Christi, Texas is well underway. This Texas platform positions the company well for its continued growth not only in Texas, but with planned operations in South Dakota, Wyoming and ultimately New Mexico. We are all looking forward to a dynamic and rewarding 2023. On behalf of the Board of Directors we extend congratulations to the enCore team for a major achievement," he added.
Alta Mesa includes a fully-licensed and constructed ISR processing facility that has an operating capacity of 1.5 million pounds of uranium per year. Between Alta Mesa, Rosita and Kingsville Dome, all fully licensed for production, enCore's ISR processing facilities have a combined potential processing capacity of 3.6 million pounds of uranium per year.
Alta Mesa is currently on standby and ready to resume production. The facility can reach commercial production levels with limited required capital within an estimated 10 months of a production decision.
"With the completion of this transaction enCore is more than doubling our production capacity in South Texas. As we advance towards our Q3/23 production goal at our Rosita ISR Uranium Processing Plant we will commence work at the Alta Mesa Project with plans to restart production in 2024 with installation of a fully permitted wellfield. The strong technical team at enCore is excited to get started at Alta Mesa. Our collective South Texas operations puts us on the path to becoming a leading producer of uranium in the US," noted Paul Goranson, CEO and director of encore.
The company said it will host an online conference call on Wednesday, February 22, 2023, at 11.00am ET. To register for the presentation, and investors can log in at this link .
Contact the author at jon.hopkins@proactiveinvestors.com