Anfield to Acquire Significant Uranium Project from enCore Energy

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.

The size of the deposit would both represent Anfield’s largest single uranium project and increase the Company’s uranium resource base by more than 60%.

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:

We are very pleased to acquire the Marquez-Juan Tafoya Uranium Project for a number of reasons: first, the advanced nature of the Project’s uranium resource, which is in line with our acquisition strategy of pursuing assets with either historical production or a historical or current resource; second, the size of the deposit, which would both represent Anfield’s largest single uranium project and increase the Company’s uranium resource base by more than 60%; and third, the Company’s expansion into another historically-prolific uranium region which could, in the longer term, serve as both a regional anchor project and Shootaring mill feed. Finally, we are pleased with the addition of enCore as a core shareholder, a company on the cusp of ISR-based uranium production in the US.

Mr. Dias continued,

As previously mentioned, we will continue to seek out prospective assets which align with our two-fold strategy of acquiring both near term and longer-term uranium and vanadium assets which will fit into our overall production plan. The near-term strategy centers on our advanced Utah and Colorado uranium and vanadium projects – Velvet Wood, West Slope and Slick Rock – underpinned by our wholly-owned Shootaring Canyon mill, one of only three licensed conventional mills in the U.S. The longer-term production strategy includes the acquisition of complementary assets with potential to feed additional uranium and vanadium resource to our Shootaring Canyon mill. We believe that Juan Tafoya will both complement our existing portfolio of assets and serve as part of our longer-term uranium production strategy.

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.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.


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