enCore expands Texas uranium license

[Redator]

Uranium producer enCore Energy (NASDAQ: EU, TSXV: EU) said on Thursday it has received approval to include the Upper Spring Creek project under its existing radioactive materials license in South Texas.

The license granted by the Texas Commission on Environmental Quality, which originally covered the company’s Rosita uranium project, has now been expanded to include the Brown Area of Upper Spring Creek.

enCore is currently the only uranium producer in the United States. It operates the 100%-owned Rosita central processing plant (CPP) in South Texas as well as the Alta Mesa CPP in a joint venture with Boss Energy (ASX: BOE).

The Texas regulatory approval marks enCore’s third permitted uranium facility in the state.

According to the company, the expanded license in Texas would enable the construction of wellfields and a satellite ion exchange (IX) facility to feed the Rosita CPP. The license, which provides safety, material handling, record keeping and reporting protocols, will be up for renewal in 2032.

The Rosita plant, located approximately 60 miles from Corpus Christi, Texas, where the company is headquartered, has a licensed capacity of 800,000 pounds of uranium oxide (U₃O₈) per year.

enCore previously said it aims to reach full production capacity of just under 1 million pounds of U₃O₈ annually by mid-2025, and plans to triple production within three years.

Future projects in its development pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming.

With the Texas license approval, the company said it has begun advancing development at Upper Spring Creek, with drilling rigs already mobilized to the site. Construction of the satellite IX plant’s concrete pad is expected to begin within 30 days, it added.

The Upper Spring Creek project is located in the historic Clay West uranium district of South Texas. It had previously been licensed and permitted for ISR uranium recovery prior to enCore’s acquisition in December 2020.

In its latest financial results, enCore reported a revenue increase to $58.3 million in 2024, up from $22.1 million the previous year. Despite the growth, the company posted a net loss of $68 million, compared to a $25.6 million loss in 2023.