Encore Energy Announces Third Uranium Sales Agreement
ENCORE ENERGY ANNOUNCES THIRD URANIUM
SALES AGREEMENT
CORPUS CHRISTI, Texas
,
June 28, 2022
/CNW/ -
enCore Energy Corp.
("
enCore
" or the "
Company
") (TSXV: EU)
(OTCQB: ENCUF) announced today that it has secured a uranium purchase sales agreement ("Agreement") with a
United States
("U.S.") based nuclear power company, following a recent site visit to enCore's
Texas
operations. This
agreement supports enCore's business strategy of building ISR (in-situ recovery) production in
the United States
at its
South Texas
uranium processing facility. The uranium sales agreement, the third such agreement executed by enCore,
is a multi-year agreement commencing in 2025. It covers up to 600,000 pounds of U
3
O
8
based on market pricing with
a floor price that assures our costs of production are met in today's economic environment. The Agreement includes
an inflation adjusted ceiling price higher than the current uranium spot market pricing providing the U.S. nuclear power
plant assurance of cost certainty.
Paul Goranson
, Chief Executive Officer of enCore Energy
said, "With the supply chain disruptions for nuclear fuel
resulting from serious geopolitical events, U.S. utilities need domestic supply to achieve greater certainty of supply.
We truly appreciate the opportunity to produce domestically sourced uranium and provide the U.S. with a clean and
reliable energy source. This agreement supports the Company's strategy to grow its production pipeline of ISR
projects throughout the U.S."
"enCore is committed to a balanced portfolio of sales contracts with a portion of its production in defined agreements
to ensure stability of operations while retaining a significant portion of production set aside to ensure participation in
the upside of a rising spot market," added Goranson. "We are also very aware of rising inflationary pressures, so we
are putting key expenditures behind us when they are more affordable."
Rosita Central Uranium Processing Plant (Rosita Plant)
enCore Energy's Rosita Plant, located approximately 60 miles from
Corpus Christi, Texas
, is a licensed, past-
producing in-situ recovery ("ISR") uranium plant currently under modernization and refurbishment. With a completion
deadline at the end of Q2/2022, the plant is on schedule and on budget to meet a 2023 production target. The Rosita
Plant is designed to process uranium feed from multiple satellite operations, all located in the
South Texas
area and is
1 of the 11 licensed uranium processing plants in
the United States
, 2 of which are owned by enCore Energy.
About enCore
With approximately 90 million pounds of U
3
O
8
estimated in the measured and indicated categories and 9 million
pounds of U
3
O
8
estimated in the inferred category1, enCore Energy is the most diversified in-situ recovery uranium
development company in
the United States
. enCore is focused on becoming the next uranium producer from its
licensed and past-producing South Texas Rosita Processing Plant by 2023. The
South Dakota
-based
Dewey Burdock
project and the Wyoming Gas Hills project offer mid-term production opportunities with significant
New Mexico
uranium
resource endowments providing long-term opportunities. 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.
For more information, visit
www.encoreuranium.com.
1
Mineral resource estimates are based on technical reports prepared in accordance with NI43-101 and available on SEDAR as well as company websites at
www.encoreuranium.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
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SOURCE
enCore Energy Corp.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/June2022/28/c8700.html
%SEDAR: 00029787E
For further information:
William M. Sheriff, Executive Chairman, 972-333-2214, [email protected],
www.encoreuranium.com
CO: enCore Energy Corp.
CNW 07:00e 28-JUN-22