enCore Energy Announces First Shipment and Delivery of Uranium; Continues to Address Critical Shortage of Domestic Uranium Supply to Fuel Nuclear Energy
enCore Energy Announces First Shipment and Delivery of Uranium;
Continues to Address Critical Shortage of Domestic Uranium Supply to
Fuel Nuclear Energy
NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS
,
March 5, 2024
/CNW/ -
enCore Energy Corp.
(NASDAQ: EU) (TSXV: EU) (the "
Company
" or "
enCore"
), America's Clean Energy Company™ and
America's newest uranium producer, today announced the first shipment of uranium from the Rosita Central Processing Plant ("Rosita Plant") to be followed by
the first sales delivery. The first shipment of uranium, and delivery into the sales contract comes after the commencement of production in
November 2023
and the
Grand Opening of the Rosita Plant in
February 2024
. enCore is also pleased to announce its fifth long-term supply contract.
Significant Highlights Include:
enCore has executed its initial shipment of uranium from the Rosita Plant with an expected delivery to the conversion facility the week of
March 11
th
. This is
followed by delivery of uranium to the utility customer under our sales contracts;
enCore has executed the fifth commercial uranium sales contract, with a fourth U.S. utility with deliveries from 2026 through 2032. The terms of the contract
reflect the spot price at the time of delivery subject to pricing collars that ensure enCore's revenue stream and allow for potential upside. With this latest
contract, enCore's existing commitment has increased to 4.25 million lbs. through 2032, which is well under 50% of enCore's planned production. This
contracting will assure continuous revenue to support enCore's longer range growth plans along with steady production increases as a key component of
enCore's production strategy;
enCore hosted the Grand Opening of the Rosita Plant in
February 2024
, just 20 months after work commenced to restart production. For more information
please visit:
Rosita Plant Grand Opening (youtube.com)
"We are so very happy to have had the longest serving Governor in
Texas'
history, and former
United States
Secretary of Energy,
Rick Perry
, deliver the keynote
address at our Grand Opening of the Rosita Plant in
February 2024
," said Executive Chairman
William M. Sheriff
. "Approximately 300 attendees including our
senior management, staff, family, landowners as well as federal, state, and local elected officials, community members and investors attended the Grand
Opening. Governor Perry's remarks highlighted the urgent need for domestic uranium production to provide baseload power in
the United States
. The realization
of nuclear power as the keystone to America's green electrical generation capacity was a central theme as the large crowd celebrated the newest domestic
source of uranium to fuel clean energy for
Texas
and
the United States
."
Paul Goranson, Chief Executive Office added: "It was a great honor to share the Grand Opening with all our staff and family along with our guests, providing
everyone with the opportunity to see a uranium processing plant and wellfield in full operation. It is equally exciting to now be in a position where we are shipping
uranium to our customers, again fulfilling our commitments. With Rosita underway, we are now moving aggressively to re-start the Alta Mesa Plant which we
expect will commence production as planned in Q2/2024."
Overview of enCore Energy Contract and Sales Strategy
To support our production pipeline and development plans, enCore has implemented a uranium sales strategy providing the Company with a base level of
projected income while preserving significant ability to realize opportunities in the spot market. This strategy assures that enCore will have committed sales to
support the capital necessary for construction of new projects, while maintaining flexibility to be opportunistic as market conditions continue to change in favorable
ways.
In 2021, enCore announced two term supply agreements, one with UG
USA
and one with a Fortune 150 U.S. utility. In 2022, enCore announced a third term
supply agreement with a U.S. utility; subsequently, enCore announced a fourth sales agreement with another Fortune 500 U.S. utility in February 2023. In
February 2024
, enCore signed its fifth sales agreement with a U.S. utility that extends our future deliveries to 2032 securing demand that supports our production
growth strategy.
enCore's utility contracts are all spot related with minimum floor and maximum ceiling prices that are adjusted upward annually for inflation. Minimum floor prices
are set at such levels to provide the Company with a comfortable margin over its expected costs of operations in
Texas
, while giving the Company participation in
anticipated escalations of the price of uranium. Combined, enCore has secured 4.25 million pounds U
3
O
8
in committed uranium sales contracts from 2023 to
2032. Three of the contracts provide the optionality to extend with an additional 1.65 million pounds U
3
O
8
to 2032. enCore will continue to assess opportunities to
secure future term agreements that will support its continued project and production growth strategies.
About enCore Energy Corp.
enCore Energy Corp., America's Clean Energy Company™, is committed to providing clean, reliable, and affordable fuel for nuclear energy as the newest
uranium producer in
the United States
. Uranium production commenced at enCore's licensed and past-producing South Texas Rosita Central In-Situ Recovery
("ISR") Uranium Processing Plant ("CPP") in
November 2023
with work underway for a planned Q2/2024 restart of uranium production at its licensed and past-
producing South Texas Alta Mesa CPP. The enCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium
operations and the nuclear fuel cycle. enCore solely utilizes ISR for uranium extraction, a well-known and proven technology co-developed by the leaders at
enCore Energy. In-Situ Recovery extracts uranium in a wellfield using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover
the uranium.
Future projects in enCore's production pipeline include the Dewey-Burdock project in
South Dakota
and the Gas Hills project in
Wyoming
, along with significant
uranium resource endowments in
New Mexico
providing long term opportunities. enCore diligently works to realize value from other owned assets, including our
proprietary uranium database that includes technical information from many past producing companies, from our various non-core assets, and by leveraging our
ISR expertise in researching opportunities that support the use of this technology as applied to other metals. enCore is also committed to working with local
communities and indigenous governments to create positive impact from corporate developments.
W. Paul Goranson MSc., PE., enCore's Chief Executive Officer, and a Qualified Person under NI 43-101, has reviewed and approved the technical disclosure in
this news release on behalf of the Company.
Cautionary Note Regarding Forward Looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
The Company advises that it is not basing its production decisions at the Rosita CPP and Alta Mesa CPP on a feasibility study of mineral reserves
demonstrating economic and technical viability. The production decision is based on known past In-Situ Recovery (ISR) and processing operations at this
production facility and surrounding lands. However, the Company understands that there is increased uncertainty, and consequently a higher risk of failure,
when production is undertaken in advance of a feasibility study. The Company has determined to proceed with a production decision based on past operations
at the Alta Mesa CPP, including past ISR operations in the known mineral resource areas.
Certain information contained in this news release, including: any information relating to the Company being a leading uranium company, statements regarding
future or potential production, and any other statements regarding future expectations, beliefs, goals or prospects; may constitute "forward-looking information"
and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws and regulations (collectively, "forward-looking
statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "is expected",
"does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and
similar expressions or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken) should be considered forward-looking statements. Such forward-looking statements include statements regarding extraction,
processing and sales of uranium at Rosita, Alta Mesa and future operations. All such forward-looking statements are subject to important risk factors and
uncertainties, many of which are beyond the company's ability to control or predict. Forward-looking statements necessarily involve known and unknown risks,
including, without limitation, risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the
ability of enCore to manage operations at its projects; the ability of enCore to implement its business strategies; including commencement of production at Alta
Mesa in the planned time frames or at all; the expansion of operations to satellite locations; and other risks. A number of important factors could cause actual
results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation access to capital risks in
connection with the Agreement and otherwise, exploration and development risks, changes in commodity prices, access to skilled mining personnel, the results
of exploration and development activities; production risks; uninsured risks; regulatory risks; defects in title; the availability of materials and equipment,
timeliness of government approvals and unanticipated environmental impacts on operations; litigation risks; risks posed by the economic and political
environments in which the Company operates and intends to operate; increased competition; assumptions regarding market trends and the expected demand
and desires for the Company's products and proposed products; reliance on industry equipment manufacturers, suppliers and others; the failure to adequately
protect intellectual property; the failure to adequately manage future growth; adverse market conditions, the failure to satisfy ongoing regulatory requirements
and factors relating to forward looking statements listed above which include risks as disclosed in the Company's public filings, including its annual information
form. Should one or more of these risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company assumes no obligation to update the
information in this communication, except as required by law. Additional information identifying risks and uncertainties is contained in filings by the Company
with the various securities commissions which are available online at
www.sec.gov
and
www.sedarplus.ca
a. Forward-looking statements are provided for the
purpose of providing information about the current expectations, beliefs and plans of management. Such statements may not be appropriate for other purposes
and readers should not place undue reliance on these forward-looking statements, that speak only as of the date hereof, as there can be no assurance that the
plans, intentions or expectations upon which they are based will occur. Such information, although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news
release are expressly qualified by this cautionary statement.
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SOURCE
enCore Energy Corp.
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For further information:
William M. Sheriff, Executive Chairman, 972-333-2214, [email protected], www.encoreuranium.com
CO: enCore Energy Corp.
CNW 07:00e 05-MAR-24