Assuming that a sufficient number of Azarga shareholders vote to approve the combination, the merger is expected to close in November.īoth stocks have soared in recent weeks - since mid-August, enCore shares have gained around 60% and Azarga shares have approximately doubled - primarily on the basis of a 30% increase in the spot price of uranium over this time frame. Many uranium industry observers credit the creation of the Sprott Physical Uranium Trust, a commodity fund that buys and holds physical uranium, as a key reason for uranium’s recent price action. uranium in situ recovery (ISR) mining company with a large resource base (90 million pounds of uranium on a Measured & Indicated basis and 9.9 million additional pounds on an Inferred basis) as the key reason for the merger. ISR mines use fluid to recover valuable minerals from the ground without digging and moving giant chunks of earth.Ĭlosing of the transaction requires approval by two-thirds of Azarga shareholders at a special shareholders meeting to be held in October or November. The companies cited the opportunity to create a top-tier U.S. The exchange ratio could potentially increase to as high as 0.49 shares if the 15-day VWAP of enCore stock prior to the transaction closing were to weaken from current levels. Shareholders of Azarga, a U.S.-focused uranium development company, will receive a minimum of 0.375 shares of the bigger company enCore, a firm with a similar focus, per share held.

(TSX: AZZ)in a share-for-share exchange agreement. (TSXV: EU) announced an agreement to buy Azarga Uranium Corp.

Encore energy stock