enCore Energy Corp (TSX-V:EU, NYSE-A:EU) said it has secured its fourth uranium sales agreement with the addition of a purchase sales agreement with a Fortune 500-listed US utility.
The agreement is a multi-year contract commencing in 2027, covering firm deliveries of 650,000 pounds of U308 with an option to acquire up to 400,000 pounds of U308, under a two-year extended term, if exercised.
The sales agreement is based on market pricing with a floor price well above the firm’s current projected costs of production and an inflation-adjusted ceiling price significantly higher than the current uranium spot market pricing, the company said.
READ: enCore Energy closes acquisition of Alta Mesa In-Situ Recovery uranium project
"We continue to see utilities in the United States looking to domestic uranium producers as a means to mitigate the supply chain risks resulting from continuing geopolitical uncertainty,” Paul Goranson, chief executive officer of enCore Energy, said in a statement.
“As enCore executes its strategy to be a uranium producer in the US in 2023, we provide a necessary and reliable domestic uranium supply. enCore is committed to building a balanced portfolio of sales contracts with a portion of its production in defined agreements to ensure stability of operations while retaining a significant portion of production set aside to ensure participation in the upside of a rising spot market.”
enCore Energy is the most diversified In-Situ Recovery (ISR) uranium development company in the United States and is focused on becoming the next uranium producer in 2023 from its licensed and past-producing South Texas Rosita Processing Plant.
Contact the author at jon.hopkins@proactiveinvestors.com