enCore Energy Corp. Eliminates Debt through Conversion of Promissory Note
enCore Energy Corp. has successfully eliminated its remaining debt by converting its $20 million convertible promissory note into common shares. This move follows the company’s acquisition of the Alta Mesa Project in 2023. Initially, enCore paid $60 million in cash and a $60 million convertible note for the project. As a result of the conversion, the note holder received 6,872,143 common shares. In 2023, enCore repaid $40 million of the note, fulfilling all obligations.
William M. Sheriff, Executive Chairman of enCore, emphasized the company’s transformation from a heavily indebted entity to a debt-free one. With about $70 million in cash and two upcoming projects, enCore is positioned for future success. These projects include the Alta Mesa Project and another venture that will commence once the transaction with Boss Energy is finalized.
Located in Texas, the Alta Mesa Project is a fully licensed In-Situ Recovery (ISR) uranium plant with a capacity to produce 1.5 million pounds of U3O8 annually. Throughout its history, the plant has produced nearly 5 million pounds of U3O8. Currently, enCore is in the final stages of refurbishing the plant, with plans to restart operations in early 2024. Additionally, enCore is progressing with a joint venture transaction with Boss Energy, where Boss Energy will acquire a 30% stake in the venture managed by enCore.
It is important to note that enCore has not made production decisions at Alta Mesa or Rosita CPP based on a feasibility study. The decision is primarily influenced by the past success of ISR and processing operations at these facilities, despite the increased uncertainty and risk that comes with proceeding without a feasibility study.
As America’s newest uranium producer, enCore is advancing its clean energy mission. The company has future projects in South Dakota and Wyoming, as well as significant uranium resources in New Mexico. enCore is recognized for its non-invasive ISR extraction technology, which harnesses natural groundwater and oxygen.
Overall, enCore Energy Corp. has made significant strides in restructuring its finances and is poised for success with its ongoing projects and innovative extraction methods.
Analyst comment
Positive news. enCore Energy Corp. has successfully eliminated its remaining debt and positioned itself as a debt-free entity. With $70 million in cash and upcoming projects, enCore is well-positioned for future success. The acquisition of the Alta Mesa Project and the joint venture with Boss Energy further strengthen enCore’s prospects. The company’s innovative extraction methods and clean energy mission contribute to its positive outlook in the market.
