Anfield Energy Inc. (TSX-V:AEC, OTCQB:ANLDF) told investors it has entered a deal to buy enCore Energy Corp (TSX-V:EU, NYSE-A:EU)’s Marquez-Juan Tafoya uranium project in a move that will increase its uranium resource base by more than 60% and introduce enCore as a core shareholder.
The company said it entered a definitive share purchase agreement, dated June 4, 2023, with enCore to acquire its wholly-owned subsidiary, Neutron Energy Inc, the holder of the uranium project, for 185 million of its common shares and C$5 million in cash.
It noted that Juan Tafoya, located in the Grants Uranium Mineral District, 50 miles west-northwest of Alburquerque in New Mexico, hosts a historical indicated uranium resource, based on a Preliminary Economic Assessment commissioned by enCore, of approximately 7.1 million tonnes (Mt) at an average grade of 0.127% returning 18.1 million pounds (Mlbs), using a minimum 0.60 grammes per tonne (GT) cutoff.
Anfield CEO Corey Dias listed the advanced nature of the resource; the size of the deposit, which would both represent Anfield’s largest single uranium project; and the expansion into another historically-prolific uranium region which could, in the longer term, serve as both a regional anchor project and Shootaring mill feed, as catalysts for the acquisition.
“Finally, we are pleased with the addition of enCore as a core shareholder, a company on the cusp of ISR-based uranium production in the US,” Dias said.
“As previously mentioned, we will continue to seek out prospective assets which align with our two-fold strategy of acquiring both near-term and longer-term uranium and vanadium assets which will fit into our overall production plan.”
Two-fold strategy
Dias said Anfield’s near-term strategy centers on its advanced Utah and Colorado uranium and vanadium projects – Velvet Wood, West Slope and Slick Rock – underpinned by its wholly-owned Shootaring Canyon mill, one of only three licensed conventional mills in the US.
“The longer-term production strategy includes the acquisition of complementary assets with potential to feed additional uranium and vanadium resource to our Shootaring Canyon mill,” he continued.
“We believe that Juan Tafoya will both complement our existing portfolio of assets and serve as part of our longer-term uranium production strategy.”
enCore’s executive chairman William Sheriff said the company has acquired a series of quality US projects through several mergers and acquisitions at a time when there were few competitors due to the industry downturn of recent years.
“We are now capitalizing on those assets that do not meet our criteria for development such as early-stage projects and, in this case, an advanced project that is conventional in nature rather than In-Situ Recovery (ISR)-amenable,” Sheriff said.
“By gaining a significant equity interest in Anfield, a company dedicated to conventional uranium development, we gain an immediate cash payment and participation as a significant shareholder in their broad portfolio of advanced projects in the southwestern United States. Anfield holds one of the very few licensed conventional uranium mills in the US making them a logical and desirable developer of the Marquez-Juan Tafoya asset.”
Anfield said it also agreed to grant enCore the right to nominate one director to its board to serve as long as it continues to hold at least 10% of the outstanding shares of the company. During this time, enCore has agreed to vote the consideration shares in support of any decisions made by the management of the company, it added.
“With board representation, and the right to maintain our leading shareholder position, we look forward to our involvement with Anfield as they advance this key project along with their other conventional assets,” Sheriff concluded.
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