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enCore Energy Corp. (NASDAQ: EU / TSXV: EU) (the “Company” or “enCore”) has entered into a share purchase agreement with Verdera Energy Corp. (“Verdera”), pursuant to which Verdera will acquire an enCore subsidiary that holds the Crownpoint, Hosta Butte, Nose Rock, West Largo, and Ambrosia Lake – Treeline uranium projects located in New Mexico.
Under the terms of the agreement, Verdera will issue 50,000,000 non-voting preferred shares to enCore, representing approximately 73% of the current issued and outstanding shares of Verdera on a fully diluted basis; grant a 2% net proceeds royalty on uranium and a 2% net smelter returns royalty on other minerals, extracted and sold from the properties; and a non-refundable cash payment of US $350,000.
Pursuant to the agreement, following closing, Verdera will pursue a listing on a Canadian stock exchange. Concurrent with Verdera’s listing on a Canadian stock exchange, 15,000,000 Consideration Shares will convert into common shares of the resulting listed company and be retained by enCore. The remaining 35,000,000 Consideration Shares will convert into common shares and distributed to enCore shareholders.
Fort Capital acted as the financial advisor and provided an independent fairness opinion to the special committee of enCore.