- Boss Energy Limited (ASX: BOE) completes its acquisition of a 30 per cent stake in the Alta Mesa ISR Uranium Project in South Texas, with a cash transaction totalling US$60 million
- Master Transaction Agreement with EnCore, obtaining a 30 per cent equity stake in the newly formed JV company holding the Alta Mesa project
- Uranium loan agreement was established, allowing Boss Energy to loan up to 200,000 pounds of uranium to EnCore, with repayment in uranium or cash at Boss’ discretion after 12 months
- BOE last traded at $4.73, at 9:30am AEDT
Boss Energy (ASX: BOE) has completed its acquisition of a 30 per cent stake in the Alta Mesa ISR Uranium Project in South Texas, with a cash transaction totalling US$60 million (AUD$92 million).
The acquisition involved securing the interest from NASDAQ-listed enCore Energy Corp.
At the same time, Boss says it’s only weeks out from uranium production.
“This acquisition marks another major milestone in Boss’ strategy to continue growing our uranium inventory, production and cashflow in tier-one locations.” Boss Energy Managing Director Duncan Craib said.
As Craib sees it, Boss won’t be out on a lurch at Alta Mesa – he sees it as an analogue of the stock’s better-known Honeymoon project in SA. BOE has been the beneficiary of a strong uranium thematic in Q1 CY2024.
“The Alta Mesa Project has many key similarities to our Honeymoon uranium project in South Australia, where the commissioning process is well on track and we are set to produce our first drum of uranium in the coming weeks,” Craib said.
“Alta Mesa will also enable us to diversify our production on both a project and geographical basis.”
Transaction details
Boss Energy finalised the acquisition on December 6, 2023, through a Master Transaction Agreement with EnCore, obtaining a 30 per cent equity stake in the newly formed JV company holding the Alta Mesa project.
EnCore will manage the JV Company, and uranium production will be distributed proportionally to enCore and Boss Energy based on their ownership interests.
Additionally, a uranium loan agreement was established, allowing Boss Energy to loan up to 200,000 pounds of uranium to EnCore, with repayment in uranium or cash at Boss’ discretion after 12 months.
As part of the deal, Boss acquired 2,564,102 common shares of enCore at a discounted price of US$3.90 per share, generating total proceeds of US$10 million for enCore.
A collaboration agreement was also formed, granting Boss an exclusive Australian license for enCore’s Prompt Fission Neutron (PFN) exploration and production tool technology.
BOE last traded at $4.73, at 9:30am AEDT.