enCore Energy Corp. Announces Strategic Acquisition of Physical Uranium

Rhea-AI Summary

enCore Energy Corp. (OTCQX: ENCUF) has announced the acquisition of 200,000 pounds of uranium concentrate at $29.65 per pound. This strategic purchase, completed in mid-March, aims to de-risk future uranium deliveries linked to anticipated production timelines from its In-Situ Recovery (ISR) operations in South Texas. The company's CEO, Paul Goranson, emphasized that this acquisition enhances working capital and strengthens the balance sheet amidst rising uranium prices, facilitating future marketing with utility companies.

Positive

• Acquisition of 200,000 pounds of uranium concentrate enhances working capital.
• Strategic move to de-risk future uranium deliveries.
• Strengthens balance sheet as uranium prices appreciate.

Negative

• None.

TSX.V: EU
OTCQX:ENCUF
www.encoreenergycorp.com

VANCOUVER, BC, April 6, 2021 /PRNewswire/ - enCore Energy Corp. (TSXV: EU) (OTCQX: ENCUF) (the "Company") announces the company has executed an agreement to purchase 200,000 pounds of uranium concentrate for a purchase price of $29.65 per pound U₃O₈.  This spot market purchase, made in mid-March, will be delivered into the Company's account in mid-April.  The Company utilized existing funds for this purchase.  This initial purchase was made to de-risk future uranium deliveries associated with anticipated contractual production timelines from its planned ISR operations.  The purchase strengthens the Company's working capital and provides optionality in support of future capital development of its South Texas assets. 

Paul Goranson, CEO stated: "enCore Energy is focused on executing and expanding upon our physical uranium supply.  This strategy supports our objectives to  strengthen our balance sheet as uranium prices appreciate while providing inventory to support future marketing efforts which complement production with utility companies, the key purchasers in the future. enCore Energy's remaining treasury is strong and targeted for the implementation of our uranium asset strategy focused on  domestic In-Situ Recovery production opportunities in  the southwest United States."

About enCore Energy Corp.
enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy's opportunities are created from the Company's transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation.  These short-term opportunities are augmented by our strong long term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

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SOURCE enCore Energy Corp.

FAQ

What is the purpose of enCore Energy Corp.'s uranium acquisition?

The acquisition aims to de-risk future uranium deliveries and strengthen working capital.

What is the purchase price for the uranium acquired by enCore Energy?

The uranium concentrate was purchased at $29.65 per pound.

When was the uranium concentrate acquisition announced by enCore Energy?

The acquisition was announced on April 6, 2021.

How will the uranium acquisition impact enCore Energy's business operations?

It will support future marketing efforts and enhance production capabilities with utility companies.

What is enCore Energy's strategy regarding uranium supply?

The strategy focuses on expanding physical uranium supply while strengthening the balance sheet amid rising prices.