enCore Energy Corp has announced the completion of the sale of the Cebolleta Uranium Project in New Mexico to Future Fuel Corporation, a major step towards reaching enCore’s goal of becoming the next producer of American uranium.
The sale resulted in enCore holding approximately 15.90% of Future Fuels and a US$250,000 boost to enCore’s balance sheet, which will help bring its Rosita Central Uranium Processing Plant back into production, the company said.
“enCore Energy is focused on providing the necessary and reliable, clean energy in the United States by advancing the Rosita Plant and our Texas assets towards production,” enCore executive chair William M Sheriff said in a statement.
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"The sale of Cebolleta provides significant equity in Future Fuels, enhancing our already healthy balance sheet, which will see us bring our Rosita Plant back into production and deliver on our uranium sales agreements in 2023,” he added.
enCore’s Rosita Plant, located approximately 60 miles from Corpus Christi, Texas, is a licensed, past‐producing in‐situ recovery (ISR) uranium plant currently undergoing a modernization and refurbishment program.
The program, expected to be completed in the second quarter, is on schedule and on budget to meet enCore’s 2023 production target, the company said.
The Rosita Plant is designed to process uranium feed from multiple satellite operations located in the South Texas area, and is one of 11 licensed uranium processing plants in the United States, two of which are owned by enCore Energy.
“We are committed to adding value to the company while seeking to minimize shareholder dilution on our path to production,” Sheriff added.
With approximately 90 million pounds of U3O8 estimated in the measured and indicated categories and 9 million pounds of U3O8 estimated in the inferred category, enCore is rapidly advancing towards becoming the next producer of American uranium.
Contact the author at jon.hopkins@proactiveinvestors.com