News: BOE enCore Energy to sell 30% of US uranium project to Australia's Boss Energy

Dec 6 (Reuters) - Uranium producer enCore Energy EU.A said on Wednesday it will sell 30% of its Alta Mesa project in South Texas to Australia's Boss Energy (BOE) for $70 million.

Alta Mesa has an annual production capacity of 1.5 million pounds of U3O8, a uranium compound also known as yellowcake, commonly processed to serve as fuel for nuclear reactors.

Boss Energy will pay $60 million in cash, invest $10 million into enCore shares at $3.90 per share, and loan the company up to 200,000 pounds of yellowcake for enCore's commercial use over the next year.

enCore will use the net proceeds from the deal, which is expected to be completed in February 2024, to accelerate its uranium production pipeline in South Texas and develop other projects.

"The accelerated production plan is designed to take advantage of what is projected to be a very strong uranium market over the next decade," said enCore Executive Chair William Sheriff.

enCore will establish a new unit to hold the Alta Mesa project and it will be jointly owned by the two companies.