NYSE- and TSX-V-listed enCore Energy has sold a 30% interest in its Alta Mesa project, in the US, to Australia’s Boss Energy for $70-million.

Boss will pay $60-million for its interest, make an investment of $10-million into enCore common shares and provide a loan of up to 200 000 lb of uranium oxide (U₃O₈) for enCore’s commercial use over the next year.

In addition, the companies will form a strategic collaboration on the use and joint development of enCore’s proprietary Prompt Fission Neutron technology for uranium exploration and production.

Alta Mesa, which enCore bought in February from Energy Fuels for $120-million, is an in-situ recovery uranium project in south Texas. It has a licensed central processing plan (CPP) with 1.5-million pounds a year of U₃O₈  capacity through the existing ion exchange circuit that is planned for restart in early 2024. 

The CPP has the capacity to process, dry and package up to two-million pounds a year of U₃O₈, and that capacity can be met with the installation of additional ion exchange resin processing circuits similar to those in use at enCore's Rosita CPP.

The project hosts a National Instrument 43-101 resource of 3.41-million pounds at 0.109% U₃O₈ in the measured and indicated category with an additional 16.79-million pounds at 0.120% U₃O₈ in the inferred category, and there is significant potential to grow the mineral resources within the 80 900 ha project area.

The transaction, expected to be completed in February next year, provides the company with the financial capacity to significantly accelerate its uranium production pipeline across south Texas through the development of multiple satellite operations. 

“enCore is eager to accelerate its production and development activities across our entire portfolio of assets. This transaction provides enCore with proceeds of $70-million on closing, giving us the financial flexibility to ramp up our efforts in Texas, Wyoming and South Dakota,” says executive chairperson William Sheriff.

The accelerated production plan is designed to take advantage of what is projected to be a strong uranium market over the next decade.

“This surge in demand is coming at a time when the supply of uranium is already tight, with a heavy reliance on imports through Russia. In this 70:30 partnership with Boss Energy, a A$1.5-billion market capitalisation emerging ISR producer, enCore will continue as manager of the Alta Mesa joint venture. This accretive transaction provides us with the means to expand our future production profile on an aggressively expedited timeline,” says Sheriff.