VANCOUVER, BC, Dec. 13, 2021
/CNW/ - enCore Energy Corp. (TSXV: EU); (OTCQB: ENCUF)
("enCore") and Azarga Uranium Corp. (TSX: AZZ), (OTCQB: AZZUF),
(FRA: P8AA) ("Azarga Uranium") are pleased to announce
that enCore, a leading United
States ("US") in-situ recovery ("ISR") uranium development
company, has secured a second uranium purchase agreement with a
Fortune 150 United States utility. enCore's business strategy is
focused on advancing clean energy production, through the
application of ISR in the US, and is advancing its South Texas uranium processing facility
towards production. The uranium purchase agreement, which
represents the second purchase agreement executed by enCore, is a
four-year agreement commencing in 2024, and it covers up to
1.3 million pounds U3O8 based on market
pricing with a ceiling price significantly higher than the current
uranium spot market price.
Paul Goranson, enCore Chief
Executive Officer said, "We truly appreciate the confidence in
enCore Energy Corp. shown with the execution of our second uranium
sales agreement. At enCore, we are building a production pipeline
strategy focused on US based ISR uranium production. We have been
expanding our growth strategy organically with our near-term
production assets in South Texas
and through transactions with the assets that Azarga Uranium Corp.
will bring to the merged company. This agreement affirms that
growth strategy, and it provides a long-term relationship with a
large domestic nuclear power utility as it advances sustainable
clean energy generation."
enCore and Azarga Uranium Arrangement Update
Following a vote by Azarga Uranium shareholders with over 99% of
votes cast in favour of the transaction, enCore and Azarga Uranium
are working to obtain the necessary regulatory approvals required
to complete the transaction, whereby enCore will acquire all
of the issued and outstanding common shares of Azarga Uranium. As
previously announced on November 23,
2021, an extension to the arrangement agreement was executed
to allow the parties to obtain regulatory approvals, including
approval from the United States Nuclear Regulatory Commission (the
"NRC") and the final order of the Supreme Court of British Columbia (the "Final Order").
The parties expect to receive approval from the NRC on or about
December 28, 2021 and to close the
transaction shortly thereafter.
Azarga expects to apply to the Supreme Court of British Columbia in Vancouver for the Final Order on December 16, 2021 at 9:45
a.m. or as soon thereafter as counsel may be heard.
About enCore Energy Corp.
enCore Energy Corp., a U.S. domestic uranium developer focused
on becoming a leading in-situ recovery ("ISR") uranium producer, is
led by a team of industry experts with extensive knowledge and
experience in all aspects of ISR uranium operations. enCore
Energy's initial opportunities are created from the Company's
South Texas licensed and
past-producing Rosita and Kingsville Dome ISR production
facilities, under development, and multiple satellite projects in
South Texas plus the changing
global uranium supply/demand outlook and opportunities for industry
consolidation. Large uranium resource endowments in
New Mexico add to the asset base
for long term growth and development opportunities.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and
development company that controls ten uranium projects and
prospects in the United States of
America ("USA") (South
Dakota, Wyoming,
Utah and Colorado), with a primary focus of developing
in-situ recovery uranium projects. The Dewey Burdock in-situ
recovery uranium project in South Dakota,
USA (the "Dewey Burdock Project"), which is the Company's
initial development priority, has been issued its Nuclear
Regulatory Commission License and Class III and Class V Underground
Injection Control permits from the Environmental Protection Agency
and the Company is in the process of completing other major
regulatory permit approvals necessary for the construction of the
Dewey Burdock Project.
Cautionary Statements
Certain information contained herein constitutes forward-looking
information or statements under applicable securities legislation
and rules. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking statements
are frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend", "indicate",
"scheduled", "target", "goal", "potential", "subject", "efforts",
"option" and similar words, or the negative connotations thereof,
referring to future events and results. Forward-looking
statements in this press release include, but are not limited to,
statements related to enCore's growth and business strategy, the
uranium purchase agreement with Duke Energy Corporation, the timing
of certain regulatory approvals and the anticipated completion of
the transaction, the terms of the transaction and receipt of
certain regulatory approvals, including approval from the NRC and
the Final Order.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of enCore and/or Azarga Uranium to be
materially different from those expressed or implied by such
forward-looking statements, including, but not limited to: any
inability of the parties to satisfy the conditions to the
completion of the transaction on acceptable terms or at all;
receipt of necessary stock exchange, court, NRC and other
regulatory approvals; the ability of enCore and Azarga Uranium to
achieve their stated goals and objectives; the costs associated
with the companies' objectives; risks and uncertainties related to
the COVID-19 pandemic and measures taken to attempt to reduce the
spread of COVID-19; and the risks and uncertainties identified in
enCore's Management's Discussion and Analysis for the nine months
ended September 30, 2021 and Azarga
Uranium's Annual Information Form for the year ended December 31, 2020, each filed on SEDAR at
www.sedar.com. Although management of each of enCore and Azarga
Uranium has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate.
Accordingly, readers should not place undue reliance on
forward-looking statements. Neither party will update any
forward-looking statements or forward-looking information that are
incorporated by reference herein, except as required by applicable
securities laws. enCore and Azarga Uranium caution readers not to
place undue reliance on these forward-looking statements and it
does not undertake any obligation to revise and disseminate
forward-looking statements to reflect events or circumstances after
the date hereof, or to reflect the occurrence of or non-occurrence
of any events.
This press release is not and is not to be construed in any way
as, an offer to buy or sell securities in the United States. The distribution of the
enCore common shares in connection with the transactions described
herein will not be registered under the United States Securities
Act of 1933 (the "U.S. Securities Act") and the enCore common
shares may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements of the U.S. Securities Act and
applicable state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
the enCore common shares, nor shall there be any offer or sale of
the enCore common shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Neither the TSX, the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX and TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
www.encoreuranium.com www.azargauranium.com
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SOURCE enCore Energy Corp.