#United States #Dallas #enCore Energy #Verdera Energy #uranium assets

enCore Energy's Strategic Move in New Mexico

enCore Energy Corp., a leader in the clean energy sector as America's Clean Energy Company™, has initiated a major transaction involving its uranium assets in New Mexico. The company has signed a definitive agreement to sell a subsidiary that oversees Crownpoint, Hosta Butte, Nose Rock, West Largo, and Ambrosia Lake – Treeline uranium projects to Verdera Energy Corp. This strategic sale will see enCore receiving 50 million non-voting preferred shares of Verdera, cash, and royalties tied to uranium extraction and mineral sales from the properties. With this transaction, enCore aims to streamline its operations focusing on its core uranium extraction plans in South Texas while hoping to generate more shareholder value.

Details of the Agreement

The terms of the agreement outline that enCore will receive not only the preferred shares but also a 2% net royalty on proceeds from uranium sales, alongside a similar royalty on other mineral sales, and a non-refundable cash payment of $350,000. This marks the largest transaction in enCore's ongoing strategy of divesting non-core uranium assets, which are not currently lined up for production. The acquisition by Verdera was carefully timed, with a Canadian stock exchange listing expected by December 2025, and could be postponed to January 2026.

coinciding with Verdera's market entry, enCore plans to distribute a portion of the Consideration Shares to its shareholders as a stock dividend, thus reinforcing their position in the newly formed publicly listed entity.

Unmatched Potential in New Mexico

The New Mexico uranium properties hold a wealth of potential. Located in the historically prolific Grants Uranium District, these assets cover over 400 square miles, containing a rich vein of known uranium resources with excellent exploration potential. Over the years, the Grants Uranium District has been responsible for producing nearly 40% of all uranium mined in the United States, with estimates showing over 350 million pounds of U3O8 extracted to date.

The crucial projects included in this transaction, such as the Crownpoint and Hosta Butte projects, stand out for their operational readiness and documented resource topics. Crownpoint has the necessary permits to recover up to 3 million pounds of uranium each year and is strategically located near licensed processing sites.

Leadership's Vision

William M. Sheriff, the Executive Chairman of enCore, emphasized that through this strategic divestment, the company aims to focus better on enhancing shareholder value and ensuring the New Mexico projects get the attention they deserve. He asserted the importance of working closely with Verdera and its leadership, particularly CEO Tim Gabruch, in fostering relationships with local communities and ensuring a sustainable approach to uranium development.

This transaction not only encompasses a shift in focus for enCore but also indicates broader trends in the uranium market where domestic resources are becoming critically important to meet energy demands.

Upcoming Webcast and Corporate Updates

To discuss these developments, enCore will be hosting a Corporate Update Webcast on March 20 at 11:00 AM ET. Shareholders and interested parties can register to receive insights from the executive team about the impacts of this move and further corporate strategies.

For visuals related to the New Mexico assets, interested parties can access a detailed map online.

This strategic sale showcases enCore's commitment to creating more value for shareholders while shifting its focus towards its core operations, with the expectation of more announcements surrounding the upcoming distribution and corporate strategies in the following months.