DALLAS - enCore Energy Corp. (NASDAQ: NASDAQ:EU) (TSXV: EU), a U.S. uranium producer, has announced the conversion of its outstanding $20M convertible promissory note into common shares, which effectively clears the company’s remaining debt. This move stems from the acquisition of the Alta Mesa Project in 2023, for which enCore initially paid $60 million in cash and a $60M convertible note.
The conversion resulted in the issuance of 6,872,143 common shares to the note holder. Previously, in 2023, the company repaid $40M of the note. With this latest conversion, enCore has satisfied all obligations under the note.
William M. Sheriff, Executive Chairman of enCore, highlighted the company's significant transition from a debt-laden entity to a debt-free one, with an anticipated $70M in cash and two projects expected to be in production soon. This includes the Alta Mesa Project and another venture following the completion of a transaction with Boss Energy.
The Alta Mesa Project, located in Texas, is a fully licensed In-Situ Recovery (ISR) uranium plant with an operating capacity of 1.5 million pounds of U3O8 per year. It has historically produced nearly 5 million pounds of U3O8. enCore is in the final stages of refurbishing the plant for a planned early 2024 restart. Additionally, enCore is progressing with a joint venture transaction with Boss Energy, where Boss Energy will acquire a 30% interest in the venture managed by enCore.
enCore has not based its production decisions at Alta Mesa or Rosita CPP on a feasibility study of mineral reserves demonstrating economic and technical viability. Instead, the decision is based on past ISR and processing operations at these facilities. The company acknowledges the increased uncertainty and risk of failure when production is undertaken without a feasibility study.
enCore is advancing its clean energy mission as America’s newest uranium producer, with future projects in South Dakota and Wyoming and significant uranium resources in New Mexico. The company is also known for its ISR extraction technology, which is considered non-invasive and utilizes natural groundwater and oxygen.
This news article is based on a press release statement from enCore Energy Corp.
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