enCore Energy to Sell Uranium Assets in New Mexico and Distribute Consideration Shares to Shareholders

08:01 AM EDT, 03/18/2025 (MT Newswires) -- enCore Energy (EU.V) said Tuesday that it signed a definitive agreement to sell its uranium assets in New Mexico to Verdera Energy.

Under the terms, Verdera will acquire an enCore subsidiary that holds the Crownpoint, Hosta Butte, Nose Rock, West Largo, and Ambrosia Lake-Treeline uranium projects. enCore will receive 50 million Vedera non-voting preferred shares, 73% of Verdera's issued and outstanding shares on a fully diluted basis.

enCore will also get a 2% net proceeds royalty on uranium and a 2% net smelter returns royalty on other minerals extracted and sold from the properties. Verdure will also make a non-refundable cash payment of US$350,000.

"As enCore pushes forward on its aggressive uranium extraction plans in South Texas, we continue to execute on our stated non-core asset disposition strategy to create additional value for shareholders," said William Sheriff, enCore's executive chairman. "We believe that our New Mexico projects deserve a dedicated focus, which they do not currently receive inside enCore's broader portfolio of producing and near-term producing assets."

After the deal closes, Verdera will pursue a listing on a Canadian stock exchange by Dec. 10, which may be extended to Jan. 31, 2026.

enCore said 15 million consideration shares will convert into shares of the resulting listed company and be retained by enCore. The remaining 35 million consideration shares will convert into common shares of the resulting issuer in connection with enCore's planned distribution of shares to its shareholders by way of a stock dividend or similar distribution.

enCore's share price closed 6.2% higher on Monday to $2.23 on the TSXV.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.