enCore Energy completes acquisition of Texas-based uranium production, resource assets
Vancouver-based enCore Energy Corp. has executed a Share Purchase Agreement with Westwater Resources Inc. to acquire all of Westwater’s United States uranium assets. The terms of that Agreement were completed and the transaction was closed on December 31, 2020.
The assets include two licensed Texas-based in-situ recovery uranium production facilities, significant given there are only eleven ISR production facilities in the United States. Other assets included are mineral exploration leases in Texas, and more than 270 square miles (180,000 acres) of deeded mineral rights in New Mexico with four projects containing significant historical resources. This acquisition more than double the Company’s current mineral rights and historical resource holdings and adds two already licensed uranium production facilities.
William M. Sheriff, executive chairman of enCore Energy stated “This transformational acquisition is the first significant step to build enCore into a domestic uranium producer. Our experienced and accomplished management team believes that a major change is coming in the uranium market in the next 12 to 24 months. The recent impressive strength in the uranium equity market is evidence of a broader realization within the financial community of the early changes in the dynamics of the uranium market. In addition to the key acquisition of licensed production facilities in Texas, enCore will hold the leading land position in New Mexico, consolidating the large Santa Fe and Frisco railroad “checkerboard” mineral rights land grant running through most of the Grants mineral belt.
“As market conditions continue to improve, we look forward to updating and preparing the Rosita, Texas processing facility for commercial uranium production and restarting uranium production in one of the most favorable uranium districts in the United States. These licensed production facilities have demonstrated histories of lower cost uranium production, and they are in a local region with known historic uranium resources.” added enCore Energy’s Chief Executive Officer, W. Paul Goranson.
“We believe the timing of this acquisition coincides with dramatic changes in the supply-demand balance in the global uranium markets as several major primary uranium production centers have either significantly curtailed production due to market conditions or are being closed all together. At the same time, the U.S. Government has taken several actions to support domestic uranium production, including funding of the Uranium Reserve, codifying in statute the terms of the recently amended Russian Suspension Agreement, and funding the start of a domestic nuclear fuel cycle to support the advancement of advanced reactor designs and small modular reactors”.