EnCore Energy (Nasdaq: EU, TSXV: EU), America’s only uranium producer, says it’s received Texas approval for the construction of well fields and a satellite ion exchange plant on its Upper Spring Creek uranium project to supply its Rosita uranium processing plant.
The regulatory approval for Upper Spring Creek marks enCore’s third permitted uranium facility in the state.
The Rosita central processing plant (CPP) has a licensed capacity of 800,000 lb. of uranium oxide (U₃O₈) per year. It’s located about 100 km from Corpus Christi, where enCore is headquartered. The company also operates the Alta Mesa CPP as a 70:30 joint venture with Boss Energy.
EnCore aims to reach full production capacity of just under one million lb. of U₃O₈ annually by mid-2025 and plans to triple production within three years.
Shares in enCore Energy fell 4.4% on Thursday in Toronto to close at $2.81 apiece, valuing the company at $525 million. The wider TSX declined 0.3% on the day.
Drilling rigs
The company has begun advancing development at Upper Spring Creek, with drilling rigs already mobilized to the site. Construction of the satellite ion exchange plant’s concrete pad is expected to begin within 30 days.
The Upper Spring Creek ISR project is located in the historic Clay West uranium district in South Texas. Acquired by enCore in December 2020, the project had previously been licensed and permitted for ISR uranium recovery.
In its latest financial results, enCore reported a revenue increase to $58.3 million in 2024 from $22.1 million the previous year. Despite the growth, the company posted a net loss that widened to $68 million from $25.6 million in 2023.
Brown area
EnCore’s current license, which originally covered Rosita, has now been expanded to include the Brown area of the Upper Spring Creek project. The state Commission on Environmental Quality adjusted enCore’s radioactive materials license.
Future projects in enCore’s development pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming.
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