enCore Energy Advances Development at Rosita Uranium Plant in South Texas; enCore Energy and Azarga Uranium provide update to plan of arrangement

By Judy J. Beasley Last updated Nov 23, 2021

VANCOUVER, BC, 23 November 2021 / CNW / – enCore Energy Corp. (TSXV: EU) (OTCQB: ENCUF) (“enCore”) and Azarga Uranium Corp. (TSX: AZZ) (OTCQB: AZZUF) (FRA: P8AA) (“Azarga Uranium”) are pleased to provide an update on the modernization of other activities at the central processing plant of Rosita (“Rosita”) in South Texas expected to be completed in Q2 / 2022. enCore also continued to advance its Texas asset acquisition strategy focused on established, previously licensed projects with known mineralization to augment enCore’s existing portfolio of projects near Rosita. Confirmation and development drilling has started at the newly acquired Rosita extension, much of which is within the existing permit area. This development will provide mineral interpretation and resources for the design of the wellfield in line with the expected start of production activities in 2023.

New logo (CNW Group / enCore Energy Corp.)

Paul Goranson, the President and CEO of enCore said: “The progress of enCore’s efforts in South Texas was exceptional. Using our own in-house technical staff, we are executing our strategy of completing Rosita upgrades by the end of Q2 2022 and wellfield commissioning in H1 2023 with projects on schedule. and within budget. As we move forward in our plans South Texas and accelerate activities on key Dewey Burdock and Gas Hills projects through the shareholder-approved acquisition of Azarga Uranium, enCore is on track to become the leading producer of ISR uranium in the United States.

Rosita central processing plant

The modernization of the Rosita central processing plant began in July 2021 with a forecast budget of less than $ 1 million. Work activities are now 50% complete, on time and on budget. Recent major equipment works include the relocation and installation of the yellowcake filter press, the completion of the ion exchange resin elution and the yellowcake drying circuits.

Confirmation and development drilling of the Rosita extension

A 50 hole confirmatory and development drilling program is currently underway in the extension of the former Rosita wellfields (the “Rosita Extension”). The Rosita Extension was first explored by Mobil Oil Corporation which drilled over 800 holes to depths of up to 400 feet before 1984. Subsequent operators completed additional exploration drill holes confirming the trends mineralized.

Update of the enCore and Azarga uranium arrangement

Following a shareholder vote of Azarga Uranium with over 99% of votes approving the transaction, enCore and Azarga Uranium are working closely to complete the regulatory approvals necessary to complete the previously announced plan of arrangement ( the transaction “). An extension of the Arrangement Agreement has been signed to allow the parties to obtain normal regulatory approvals, including approvals from the United States Nuclear Regulatory Commission and the British Columbia Supreme Court.

About enCore Energy Corp.

enCore Energy Corp., a US national uranium developer aiming to become a major producer of recovered in situ (“ISR”) uranium, is led by a team of industry experts with extensive knowledge and experience of all aspects of ISR uranium operations. The first opportunities for enCore Energy are created from South Texas Rosita and Kingsville Dome ISR licensed and older production facilities, under development and several satellite projects in South Texas as well as the changing outlook for global uranium supply and demand and the opportunities for industry consolidation. The large endowments of uranium resources in New Mexico add to the asset base for long-term growth and development opportunities.

About Azarga Uranium Corp.

Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in United States of America (“UNITED STATES”) (South Dakota, Wyoming, Utah and Colorado), whose main objective is to develop uranium recovery projects in situ. The Dewey Burdock in situ uranium recovery project in South Dakota, United States (the “Dewey Burdock Project”), which is the Company’s initial development priority, has obtained its license from the Nuclear Regulatory Commission and its Class III and Class V underground injection control licenses from Environmental Protection. Agency and the Company are in the process of completing other major regulatory approvals required for construction of the Dewey Burdock project.

Warnings

Certain information contained in this document constitutes forward-looking information or statements under applicable securities laws and rules. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by words such as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “indicate”, “Anticipate”, “target”, “objective”, “potential”, “object”, “efforts”, “option” and similar words, or their negative connotations, referring to future events and results. Forward-looking statements contained in this press release include, without limitation, statements relating to the timing of completion of the modernization activities of enCore in Rosita and the completion of the wellfield commissioning, the enCore’s ability to meet the planned start of production activities in 2023, the anticipated completion of the Transaction, the terms of the Transaction and the obtaining of certain regulatory approvals.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of enCore and / or Azarga Uranium is materially different from those expressed or implied by such forward-looking statements, including, but not limited to: any failure of the parties to meet the terms of completion of the Transaction on acceptable terms or not at all; receipt of necessary stock market, legal and other regulatory approvals; the ability of both enCore and Azarga Uranium to achieve their stated goals and objectives; costs associated with business objectives; the risks and uncertainties associated with the COVID-19 pandemic and the measures taken to try to reduce the spread of COVID-19; and the risks and uncertainties identified in the management report of enCore for the nine months ended September 30, 2021 and Azarga Uranium’s annual information form for the fiscal year ended December 31, 2020, each filed on SEDAR at www.sedar.com. Although the management of enCore and Azarga Uranium have attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause the results are not those anticipated, estimated or foreseen. There can be no assurance that these statements will prove to be correct. Therefore, readers should not place undue reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. enCore and Azarga Uranium caution readers not to place undue reliance on these forward-looking statements and assume no obligation to revise and disseminate forward-looking statements to reflect events or circumstances occurring after the date hereof, or to reflect the occurrence or not of the occurrence of any event.

This press release is not and should under no circumstances be construed as an offer to buy or sell securities in United States. The distribution of the common shares of enCore in connection with the transactions described herein will not be registered under the United States Securities Act of 1933 (the “US Securities Act”) and the common shares of enCore may not be offered or sold in United States the lack of registration or an applicable exemption from the registration requirements of the US Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the common shares of enCore, and there will be no offer or sale of the common shares of enCore in any jurisdiction in which a such offer, solicitation or sale would be illegal. .

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