Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF) announced that it has entered into a definitive share purchase agreement, dated June 5, 2023, with enCore Energy Corp. (NYSE American: EU; TSX.V: EU), an arms-length party, to acquire a 100% interest in the Marquez-Juan Tafoya uranium project (“Juan Tafoya”), located in the Grants Uranium Mineral District, 50 miles west-northwest of Alberquerque, New Mexico through the acquisition of enCore’s wholly-owned subsidiary, Neutron Energy, Inc. (“Neutron”).
Bottom Line:
- This transaction will add up to 18 million lbs of uranium resource to feed Anfield’s restarting Shootaring Uranium mill, one of only three permitted in the United States.
- 18 million pounds would extend the operating life of Shootaring by 24 years at the proposed throughput of 750,000 pounds per year.
- With a ban on Russian uranium imports making its way through Congress, the opportunity for domestic processors could be significant in coming years.
Transaction Details
Juan Tafoya hosts a historical indicated uranium resource, based on a Preliminary Economic Assessment commissioned by enCore, of approximately 7.1MT at an average grade of 0.127% returning 18.1Mlbs, using a minimum 0.60 GT cutoff (Marquez-Juan Tafoya Uranium Project, 43-101 Technical Report, Preliminary Economic Assessment, BRS, Inc., June 2021). While the Company is not treating this resource as a current mineral resource, and a qualified person engaged by the Company has not done sufficient work to classify this resource as current mineral resource, the Company does believe the previous analysis conducted to be reliable and the information to be of assistance to readers.
As consideration for the acquisition of Neutron, enCore will receive 185 million common shares of the Company (“the Consideration Shares”) and C$5 million in cash. The Company has also agreed to grant enCore the right to nominate one Director to the board of directors of the Company, to serve as long as enCore continues to hold at least 10% of the outstanding shares of the Company. During this time, enCore has agreed to vote the Consideration Shares in support of any decisions made by management of the Company.
Completion of the acquisition of Neutron, and the issuance of the Consideration Shares, remains subject to the approval of the TSX Venture Exchange. Following issuance, the Consideration Shares will be subject to statutory restrictions on resale for a period of four-months-and-one-day. No finders’ fees or commissions are owing by the Company in connection with the acquisition.
Corey Dias, Anfield’s CEO commented:
Mr. Dias continued,
About the Marquez-Juan Tafoya Project
The Project is located within the Grants Uranium Mineral District of northwest New Mexico, approximately 50 miles west-northwest of Albuquerque, New Mexico. It consists of two adjacent properties: Marquez and Juan Tafoya, that were previously developed by separate mining companies, Kerr-McGee Corporation and Bokum Resources, respectively. 926 drill holes totaling approximately 1.9 million feet drilled were completed by past operators.
In the 1970s to early 1980s, extensive mineral exploration by drilling defined significant uranium resources on the two properties. Mine and mineral processing infrastructure was constructed by Bokum Resources on the Juan Tafoya portion of the Project, including a 14-foot production shaft (completed to within 200 feet of the mine zone), a 5-foot ventilation shaft, and a partially-built mill processing facility and tailings disposal cell. The surface facilities were dismantled and reclaimed in the early 2000s.
Qualified Persons
Douglas L. Beahm, P.E., P.G., principal engineer at BRS Inc., is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical content of this news release.
Velvet-Wood and Slick Rock PEA Interview
Anfield recently reported the results of a combined Preliminary Economic Assessment (PEA) for both its Utah-based Velvet-Wood Uranium and Vanadium Project and its Colorado-based Slick Rock Uranium and Vanadium Project. We sat down with Mr. Dias to discuss the details:
Anfield Energy is a market awareness client of Capital 10X.
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