Boss Energy has finalised the deal to acquire a 30% stake in the Alta Mesa ISR Uranium Project in South Texas, US, from enCore Energy, for a cash payment of $60m (A$91.62m).

Additionally, the transaction includes a $10m investment in enCore common shares by Boss Energy.

This acquisition strengthens Boss Energy’s position in the uranium sector.

Proceeds from the deal will provide enCore with the necessary funds to expedite its uranium production across South Texas.

It enables enCore to fast-track the development of its Dewey Terrace and Dewey-Burdock projects, as well as the Gas Hills project in Wyoming.

The deal, announced on 6 December 2023, was formalised after Boss Energy entered into a master transaction agreement with enCore and its subsidiary, enCore Energy US.

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Upon meeting the conditions precedent, the parties established a joint venture (JV) company to manage the Alta Mesa Project, with enCore retaining a 70% equity stake.

As per the JV agreement, enCore will oversee the management of the JV company, and uranium distribution from Alta Mesa will be allocated proportionally to the ownership interests of enCore and Boss Energy.

In addition to the equity acquisition, the two companies agreed on a uranium loan of up to £200,000 from Boss Energy to enCore.

The two companies also signed a strategic collaboration agreement, granting Boss Energy an exclusive Australian licence for enCore’s Prompt Fission Neutron (PFN) technology, which is used in uranium exploration and production.

Boss Energy managing director Duncan Craib said: “This acquisition marks another major milestone in Boss’ strategy to continue growing our uranium inventory, production and cash flow in tier-one locations.

“The Alta Mesa Project has many key similarities to our Honeymoon uranium project in South Australia, where the commissioning process is well on track and we are set to produce our first drum of uranium in the coming weeks.

“Alta Mesa will also enable us to diversify our production on both a project and geographical basis. Our strong production and growth outlook is underpinned by a robust balance sheet with no debt and a strategic uranium stockpile now worth $195m based on current spot prices.”

Last year, in October, Boss Energy initiated mining activities at its Honeymoon project near the town of Broken Hill in South Australia.