Encore Energy Monetizes Uranium Exploration Assets IN Arizona and Wyoming
ENCORE ENERGY MONETIZES URANIUM
EXPLORATION ASSETS IN ARIZONA AND
WYOMING
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES
/
Sale of Moonshine Arizona and Kaycee Wyoming Projects to Nuclear Fuels Inc.
TSX.V: EU
OTCQB: ENCUF
www.encoreuranium.com
CORPUS CHRISTI, Texas
,
Nov. 3, 2022
/CNW/ - enCore Energy Corp. (TSXV: EU) (OTCQB:
ENCUF) ("
enCore
" or the "
Company
") announced today, as a component of its on-going Non-Core
Exploration Asset Divestment Strategy, that the Company has entered into agreements to sell
certain uranium exploration assets to Nuclear Fuels Inc. ("
Nuclear Fuels
"), a private
British
Columbia
company, for shares in Nuclear Fuels, royalty interests and production back-in rights in
the properties. The Company has agreed to sell its Belt Line Resources, Inc. ("
Belt Line
") and
Hydro Restoration Corporation ("
Hydro
") subsidiaries to Nuclear Fuels. 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
. Historic Resource are known on all three projects
(1,2,3,4)
.
"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. 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
William M. Sheriff
, Executive Chair of enCore
Energy
. "Nuclear Fuels has sound, known management and excellent exploration assets in favorable
established jurisdictions such as
Wyoming
. With enCore's ownership of 19.9% and a back-in right on
the large Kaycee Property, we not only maintain access to production from advancing the property,
our balance sheet is strengthened with our share position at a time when nuclear energy is gaining in
prominence as a viable, reliable domestic source of energy."
Kaycee Uranium Project,
Wyoming
The large Kaycee project will, with this transaction, be under one roof for the first time in modern
history. With a 26 mile trend historic drilling has confirmed uranium mineralization in three
stratigraphic units which will require significant exploration over the next few years to potentially
develop into an advanced project. In addition to uranium, other potential by-product metals have
been identified including Molybdenum and Vanadium.
Bootheel Uranium Project
The Bootheel project, southeast of
Shirley Basin
in
Albany County, Wyoming
, is known to host roll-
front mineralization in three ages of sandstone with testing indicating amenability to in-situ recovery
extraction of uranium.
Moonshine Uranium Project,
Arizona
The Moonshine Project offers good upside with an expanded exploration program. The sandstone
roll-front uranium deposit occurs primarily in
Chinle
formation with a 3-mile trend of uranium
mineralization identified with sparse drilling. Tests indicate potential amenability to in-situ recovery
extraction
Terms of Transaction
Pursuant to the terms of the share purchase agreement for the sale of Belt Line, enCore has agreed
to sell Belt Line in consideration for (i) the right to receive shares of Nuclear Fuels representing 5%
of the issued shares of the resulting issuer on completion of a going public transaction by Nuclear
Fuels (the "Resulting Issuer") determined immediately prior to the closing of the going public
transaction; (ii) a 2% net smelter returns royalty on the unpatented mining claims forming part of the
Moonshine Springs Uranium Project located in
Mohave County, Arizona
; and (iii) a 1% net smelter
returns royalty on certain leasehold estates comprising the Moonshine Springs Uranium Project.
Pursuant to the terms of the share purchase agreement for the sale of Hydro, enCore US has
agreed to sell Hydro in consideration for (i) the right to receive shares of Nuclear Fuels representing
14.9% of the issued shares of the Resulting Issuer determined immediately prior to the closing of the
going public transaction; (ii) a 2% net smelter returns royalty on the unpatented mining claims
forming part of the Kaycee and Bootheel Uranium projects, located in
Wyoming
; and (iii) a 1% net
smelter returns royalty on certain leasehold estates comprising the Kaycee and Bootheel Uranium
projects. The Company will also receive the right to repurchase 51% of the Kaycee Project for a
cash payment equal to 2.5 times the exploration expenditures incurred by Nuclear Fuels on the
project.
Following the closing, the Company will have the right to participate in equity financings of the
Resulting Issuer in order to maintain its percentage interest in the Resulting Issuer, and the right to
nominate two individuals to the board of directors of Nuclear Fuels, in each case for so long as the
Company holds at least 10% of the outstanding shares capital of the Resulting Issuer.
Closing of the sale of Belt Line and Hydro are subject to customary closing conditions. The
transaction is an-Arm's Length Transaction under stock exchange rules.
QP STATEMENT
Mark Pelizza
, MSc. Geo. Eng., CPG-11821, a Director for the Company, and a Qualified Person
under NI 43-101, has approved the technical disclosure in this news release.
About enCore Energy Corp.
With approximately 90 million lbs U
3
O
8
estimated in the measured and indicated categories and 9
million lbs U
3
O
8
estimated in the inferred category
2
, enCore 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.
enCore is committed to engaging and working with local communities and indigenous governments to
create positive impact from corporate developments.
2
Mineral resource estimates are based on technical reports prepared in accordance with NI 43-101 and available on SEDAR as well as the enCore website at
www.encoreuranium.com
.
On behalf of the Board of Directors
"William M. Sheriff"
Executive Chairman
References:
1)
Spiering, Eugene D., 1983, Geologic Report on the 1983 Mapping Program of the Kaycee Uranium Project: Private Company Report, 79p., 27 pl.
2)
NI-43-101 Technical Report,
Resources Moonshine Springs Uranium Project Mohave County, Arizona, USA completed by WWC Engineering, Ben Schiffer, P.G. November
2022
3)
Underhill, Douglas H. and Roscoe, William E., 2009, Technical Report on the Bootheel Uranium Property, Shirley Basin Mining District, Albany County, Wyoming by Scott
Wilson Roscoe Postle Associates Inc. : Crosshair Exploration & Mining Corp. and UR Energy Inc., 127 p.
4)
*A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to
verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources
categories prescribed under NI 43-101. Nuclear Fuels is not treating the historical estimate as a current mineral resource and it should not be relied upon.
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.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this news release constitutes forward-looking statements under applicable
securities laws. Any statements that are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements. Forward-looking statements are
often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe",
"intend" or the negative of these terms and similar expressions. Forward-looking statements in this
news release include, but are not limited to, statements relating to the completion of the
transactions contemplated in the Belt Line Agreement and the Hydro agreement, receipt of stock
exchange approval by Nuclear Fuels of the Going Public Transaction, completion of the Going
Public Transaction, and the nomination of directors the Company to Nuclear Fuels or the Resulting
Issuer, as applicable. 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; inability to access additional capital; the
ability of enCore to implement its business strategies; and other risks. Readers are cautioned not
to place undue reliance on forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed 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.
SOURCE
enCore Energy Corp.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2022/03/c2993.html
%SEDAR: 00029787E
For further information:
please contact: William M. Sheriff, Executive Chairman, (972) 333-2214,
[email protected], www.encoreuranium.com
CO: enCore Energy Corp.
CNW 07:00e 03-NOV-22