The combined company will have exploration and development staged in-situ recovery (ISR) focused uranium projects in the US
EnCore to merge with Azarga. (Credit: Khusen Rustamov from Pixabay.)
US-based uranium developer enCore Energy has reached a definitive agreement to acquire Azarga Uranium, under a court-approved plan of arrangement.
The transaction is expected to result in the creation of a major American uranium in-situ recovery (ISR) mining company with multiple assets at various stages of development.
Under the terms of the agreement, Azarga shareholders are expected to receive 0.375 common shares of enCore for each Azarga common share held.
The combined company will have a large pipeline of exploration and development staged ISR focused uranium projects in the US.
It is expected to hold a uranium resource base of 90 million pounds in the measured and indicated category and 9.9 million pounds in the inferred category. In addition, it will possess 68.4 million pounds in the historic category.
enCore CEO Paul Goranson said: “enCore is delighted to combine our assets with those of Azarga. Dewey Burdock is an excellent ISR uranium project and we look forward to building upon Azarga’s successes to create additional value through development progress and eventually production.
“In addition to the execution of plans for near term production in Texas and a dominant mineral position in New Mexico, this combination will see enCore take another leap forward towards realizing the goal of becoming a larger and more diversified uranium development company during a time of positive sentiment for nuclear energy.”
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects in South Dakota, Wyoming, Utah and Colorado, in the US.
The acquisition includes the licensed Rosita & Kingsville Dome past producing uranium production facilities in South Texas.
It also includes Dewey Burdock project in South Dakota, and PEA-staged Gas Hills Project located in Wyoming, along with a portfolio of resource staged projects across the US.
In November last year, Azarga secured final permits from the US Environmental Protection Agency (EPA) for the Dewey Burdock project.
The transaction is expected to close in November 2021, subject to satisfaction of certain customary closing conditions, including regulatory approvals.
Upon closing, the combined company will be led by existing enCore team.