Anfield Energy Inc. (TSX-V: AEC) (OTCQB: ANLDF) will be expanding its uranium resource base by 60 per cent and securing its largest asset producing the element through the acquisition of a New Mexico project from enCore Energy Corp. (NYSE American: EU) (TSX-V: EU).
The companies announced the deal on Tuesday in which Anfield will be acquiring a 100 per interest in the state’s Marquez-Juan Tafoya uranium project for $5 million in cash and 185 million shares.
The project is situated in the Grants Mining District about 50 miles northwest of Albuquerque and the acquisition of the project will include the acquisition of enCore’s wholly-owned subsidiary, Neutron Energy. The transaction is currently pending approval from the TSX Venture Exchange and is expected to close by July 21.
“We believe that Juan Tafoya will both complement our existing portfolio of assets and serve as part of our longer-term uranium production strategy,” said Anfield’s CEO Corey Dias.
“Anfield holds one of the very few licensed conventional uranium mills in the U.S. making them a logical and desirable developer of the Marquez-Juan Tafoya asset,” said enCore’s Executive Chairman William M. Sheriff.
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enCore is currently in the process of divesting its portfolio of uranium assets.
Anfield recently filed a preliminary economic assessment (PEA) for its Slick Rock and Velvet Wood uranium and vanadium projects, which indicated that the sites would produce 750,000 pounds of uranium and 2.5 million pounds of vanadium annually over the next 15 years. The PEA indicates a net present value of US$197 million post-tax for the projects.
Other major uranium companies include Cameco Corp (TSX: CCO), Uranium Energy Corp. (NYSE American: UEC) and Energy Fuels Inc. (TSX: EFR).
Anfield shares dropped by 8.33 per cent Tuesday to trade at $0.05 and enCore shares fell by 3.38 per cent to $3.43 on the TSX Venture Exchange.
rowan@mugglehead.com
