The deal lifts enCore’s total production capacity including the Rosita and Kingsville Dome plants in Texas to 3.6 million lb. a year with the goal of starting production at Rosita next year, it said.
The acquisition is being funded through a bought deal with Canaccord Genuity as lead underwriter for 20 million shares at $3 each for $60 million, enCore said. The remaining $60 million is a secured vendor take-back convertible promissory note allowing Energy Fuels two years to acquire shares and warrants of enCore at a 20% premium.
Shares in EnCore Energy fell more than 10% in Monday morning trading in Toronto to C$2.91 each, its lowest price since Feb. 2021, valuing the company at C$315.3 million. The stock has traded as high as C$6.15 in the last 12 months.
Energy Fuels fell 2.6% to C$9.95, valuing the company at C$1.57 billion. It has traded in the range of C$6.14 to C$13.95 over the past 52 weeks.
EnCore chief executive officer…
