Boss has acquired a 30% equity interest in a new joint venture (JV) company, in exchange for $60m, and made a $10m equity investment in enCore Energy, by purchasing of 2,564,102 enCore shares in a private placement
Boss Energy acquires 30% stake in Alta Mesa project. (Credit: Albert Hyseni on Unsplash)
US-based clean energy company and uranium producer enCore Energy has completed the sale of a 30% stake in its Alta Mesa project to Australian uranium producer Boss Energy for $60m.
The transaction also included a $10m investment in the company by Boss Energy, through the purchase of 2,564,102 enCore shares in a private placement.
Under the terms of the Master Transaction Agreement signed in December last year, Boss acquired a 30% equity interest in a new joint venture (JV) company, in exchange for $60m.
The new JV company was established to own the Alta Mesa with enCore holding a 70% joint venture interest and Boss Energy holding a 30% joint venture interest.
It will be governed by a JV agreement signed by the two companies and appoints enCore as manager of the JV Company entitling the company to a management fee.
The JV Company will distribute uranium from production at Alta Mesa on a pro-rata basis according to enCore and Boss Energy’s ownership interest.
EnCore Energy executive chairman William Sheriff said: “The completion of the joint venture with Boss Energy comes at a transformational time for enCore and we look forward to their partnership at the Alta Mesa plant.
“With zero debt, production underway at the Rosita plant and a healthy treasury, we are in a strong position to advance the production pipeline across our portfolio at a more aggressive pace in 2024.
“We look forward to a year full of opportunity and growth as the only company in the United States with two operating uranium plants, supplying the essential material to fuel domestic nuclear energy.”
Through the transaction, enCore gained the financial capacity to advance its uranium production pipeline across South Texas through the development of multiple satellite operations.
The US uranium producer is enabled to advance the development of its Dewey Terrace and Dewey-Burdock projects across the Wyoming-South Dakota border.
The company is also facilitated to ramp up the development of its Gas Hills project in Wyoming.
In parallel to the formation of the JV company, the parties signed a uranium loan agreement providing for up to 200,000 pounds of uranium to be lent by Boss Energy to enCore.
The loan will entail a 9% interest rate and is repayable within 12 months in cash or uranium.
Furthermore, the parties also signed a collaboration agreement to develop enCore Energy’s PFN technology, which will be financed equally by each party.