Movers and SHAKERS
enCore Energy Corp. (ENCUF)(EU:CA)
enCore Closes Westwater Resources Asset Acquisition
enCore Energy Corp together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming. The firm also owns or has access to North American and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and Rancher's Exploration databases in addition to a collection of geophysical data for the high-grade Northern Arizona Breccia Pipe District.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
ENCUF announced that it has closed the acquisition of the uranium assets of Westwater Resources effective December 31, 2020. The acquisition includes two in-situ recover uranium production facilities and mineral exploration leases and rights in New Mexico and Texas. In exchange for the property, ENCUF will pay Westwater US$1.45 million in stock and grant it a 2.5% interest and 2% net smelter return royalty on mineral rights in New Mexico. Our models had assumed the transactions close and we have factored the higher share count.
The deal was expected but is still an important catalyst for the stock to move higher. The terms of the agreement match a previous Letter of Intent and the timing matches management's guidance for a close by yearend. As such, the transaction was expected. Nevertheless, closing the transaction is a key catalyst for the company to begin producing uranium. We look for the company to now start signing ...
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.