enCore Energy Corp. has reached agreements to sell certain uranium exploration assets to Nuclear Fuels Inc, a private company based in British Columbia.
As part of its non-core exploration asset divestment strategy, enCore sold its Belt Line Resources Inc and Hydro Restoration Corporation subsidiaries to Nuclear Fuels in exchange for shares in Nuclear Fuels, royalty interests and production back-in rights in the properties.
Belt Line holds the Moonshine Springs Uranium property in Mohave County, Arizona and Hydro holds the Kaycee Uranium property in Johnson County, Wyoming as well as the Bootheel Uranium project in Albany County, Wyoming, the company said.
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“The sale of our uranium exploration assets to well-managed companies with an option to participate in the production stage is a clear benefit to our shareholders," said enCore executive chairman William Sheriff. "Nuclear Fuels has sound, known management and excellent exploration assets in favorable established jurisdictions such as Wyoming.”
Sheriff noted that enCore owns 19.9% and a back-in right on the Kaycee Property, which allows the company to maintain access to production and strengthen its own balance sheet.
"enCore is dedicated to becoming the next domestic producer of uranium in the United Sates and remains focused on our extensive pipeline of quality development-stage assets in our push towards initial production in 2023 with production ramping up over the years beyond,” Sheriff added.
Additionally, enCore will have the right to participate in equity financings of the resulting issuer in order to maintain its percentage interest, and the right to nominate two individuals to the board of directors of Nuclear Fuels.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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