enCore Energy Advances Development at the South Texas Rosita Uranium Processing Plant; enCore Energy and Azarga Uranium Provide Plan of Arrangement Update
enCore Energy Advances Development at the South Texas Rosita Uranium
Processing Plant; enCore Energy and Azarga Uranium Provide Plan of
Arrangement Update
VANCOUVER, BC
,
Nov. 23, 2021
/CNW/ -
enCore Energy Corp.
(TSXV: EU) (OTCQB: ENCUF) ("enCore") and Azarga Uranium Corp. (TSX: AZZ) (OTCQB:
AZZUF) (FRA: P8AA) ("Azarga Uranium") are pleased to provide an update on enCore's modernization activities at the Rosita Central Processing Plant ("Rosita")
in
South Texas
expected to be complete in Q2/2022. enCore has also continued to advance its
Texas
asset acquisition strategy focused on established,
previously permitted, projects with known mineralization to augment enCore's existing pipeline of projects in proximity to Rosita. Confirmation and development
drilling has commenced at the newly acquired Rosita Extension, much of which lies within the existing permit area. This development will provide mineral
interpretation and resources for wellfield design in keeping with planned commencement of production activities in 2023.
Paul Goranson
, enCore's Chief Executive Officer said, "The progress of enCore's efforts in
South Texas
has been exceptional. Using our own in-house technical
staff, we are executing our strategy targeting completion of the Rosita upgrades by the end of the second quarter 2022 and wellfield commissioning in the first
half of 2023 with projects on schedule and on budget. As we advance our plans in
South Texas
and accelerate activities on the key Dewey Burdock and Gas Hills
projects from the shareholder approved acquisition of Azarga Uranium, enCore is well on its way to being America's premier ISR uranium producer."
Rosita Central Processing Plant
The Rosita Central Processing Plant modernization commenced in
July 2021
with a projected budget of less than
US$1 million
. Work activities are now 50%
complete, on schedule and on budget. Recent major equipment work includes the yellowcake filter press relocation and installation, completion of the ion
exchange resin elution and the yellowcake dryer circuits.
Rosita Extension Confirmation and Development Drilling
A 50-hole confirmation and development drilling program is presently underway at the extension of the previous Rosita wellfields (the "Rosita Extension"). The
Rosita Extension was first explored by Mobil Oil Corporation who drilled over 800 holes to depths of up to 400 feet prior to 1984. Subsequent operators
completed additional exploration drill holes confirming mineralized trends.
enCore and Azarga Uranium Arrangement Update
Following a vote by Azarga Uranium shareholders with over 99% of votes cast approving the transaction, enCore and Azarga Uranium are working together
closely to complete the necessary regulatory approvals to complete the previously announced plan of arrangement (the "Transaction"). An extension to the
arrangement agreement has been executed to allow the parties to obtain normal course regulatory approvals, including approvals from the United States Nuclear
Regulatory Commission and the British Columbia Supreme Court.
About enCore Energy Corp.
enCore Energy Corp., a U.S. domestic uranium developer focused on becoming a leading in-situ recovery ("ISR") uranium producer, is led by a team of industry
experts with extensive knowledge and experience in all aspects of ISR uranium operations. enCore Energy's initial opportunities are created from the Company's
South Texas
licensed and past-producing Rosita and Kingsville Dome ISR production facilities, under development, and multiple satellite projects in
South Texas
plus the changing global uranium supply/demand outlook and opportunities for industry consolidation. Large uranium resource endowments in
New Mexico
add to
the asset base for long term growth and development opportunities.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in
the United States of America
("USA") (
South Dakota
,
Wyoming
,
Utah
and
Colorado
), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery
uranium project in
South Dakota, USA
(the "Dewey Burdock Project"), which is the Company's initial development priority, has been issued its Nuclear Regulatory
Commission License and Class III and Class V Underground Injection Control permits from the Environmental Protection Agency and the Company is in the
process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project.
Cautionary Statements
Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. All statements, other
than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend", "indicate", "scheduled", "target", "goal", "potential", "subject", "efforts", "option" and similar words, or the negative
connotations thereof, referring to future events and results. Forward-looking statements in this press release include, but are not limited to, statements related to
the timing of the completion of enCore's modernization activities at Rosita and completion of wellfield commissioning, the ability of enCore in keeping with planned
commencement of production activities in 2023, anticipated completion of the Transaction, the terms of the Transaction and receipt of certain regulatory
approvals.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of enCore and/or Azarga Uranium
to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: any inability of the parties to satisfy the
conditions to the completion of the Transaction on acceptable terms or at all; receipt of necessary stock exchange, court and other regulatory approvals; the
ability of enCore and Azarga Uranium to achieve their stated goals and objectives; the costs associated with the companies' objectives; risks and uncertainties
related to the COVID-19 pandemic and measures taken to attempt to reduce the spread of COVID-19; and the risks and uncertainties identified in enCore's
Management's Discussion and Analysis for the nine months ended
September 30, 2021
and Azarga Uranium's Annual Information Form for the year ended
December 31, 2020
, each filed on SEDAR at
www.sedar.com
. Although management of each of enCore and Azarga Uranium has attempted to identify important
factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate. Accordingly, readers should not place undue
reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that are incorporated by
reference herein, except as required by applicable securities laws. enCore and Azarga Uranium caution readers not to place undue reliance on these forward-
looking statements and it does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the
date hereof, or to reflect the occurrence of or non-occurrence of any events.
This press release is not and is not to be construed in any way as, an offer to buy or sell securities in
the United States
. The distribution of the enCore common
shares in connection with the transactions described herein will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") and
the enCore common shares may not be offered or sold in
the United States
absent registration or an applicable exemption from the registration requirements of
the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the enCore
common shares, nor shall there be any offer or sale of the enCore common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the TSX, the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX and TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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enCore Energy Corp.
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For further information:
enCore Energy Corp., William M. Sheriff, Executive Chairman, 972-333-2214, [email protected], www.encoreuranium.com;
Azarga Uranium Corp., Blake Steele, President & CEO, 605-662-8308, [email protected], www.azargauranium.com
CO: enCore Energy Corp.
CNW 07:00e 23-NOV-21