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Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced that it has entered into a definitive agreement to sell a package of non-core uranium assets to enCore Energy Corp.
Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced that it has entered into a definitive agreement to sell a package of non-core uranium assets to enCore Energy Corp. The sale includes unpatented mining claims and leases known as the Marquez and Nose Rock projects in New Mexico, the Moonshine project inArizona, and the Cedar Mountain, Geitus, Blue Jay, and Marcy Look projects in Utah.
As quoted in the press release:
The consideration to be received by Energy Fuels for the sale of the Properties totals (i) cash of $329,960, and (ii) 14,250,000 common shares of enCore. At closing, Energy Fuels will own 19.9% of the issued and outstanding shares of enCore and hold a seat on enCore’s board of directors. Finally, enCore will assume all liabilities on the Properties, including all debts, obligations and environmental claims.
Energy Fuels is disposing of these Properties as they do not fit into the Company’s long-term production plans, due to their lower relative grades and various other technical and economic considerations. Energy Fuels’ current focus is on projects at the lower-end of the Company’s cost curve, including the Nichols Ranch ISR project, the permitted Hank ISR project, the near-permitted Jane Dough ISR project, the high-grade Canyon mine, the alternate feed material business at the White Mesa Mill, and the larger-scale Roca Honda, Sheep Mountain, and Henry Mountains conventional projects.
Energy Fuels President and CEO, Stephen P. Antony, stated:
Energy Fuels is pleased to continue our asset rationalization strategy by selling certain of our non-core assets to enCore Energy, and I believe this deal makes good sense for both companies. Energy Fuels is focusing on higher-grade, lower-cost and larger-scale uranium projects, while we continue to cut costs and monetize assets that do not fit our long-term business plans. We are also receiving shares of enCore Energy, a company that we believe has the ability to potentially unlock the value of the assets we are selling. enCore has a strong management and technical team with an excellent track-record of advancing projects in the U.S., and our ownership in enCore will provide our shareholders with a vehicle to realize the potential value of these assets
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