Encore Energy Corp.

Encore Energy Corp. is a junior uranium producer headquartered in Corpus Christi, United States, operating primarily in USA. The company's portfolio consists of 7 projects, comprising 1 operating mine, 2 development, and 4 advanced exploration projects. Key assets include South Texas Integrated Isr and Dewey Burdock. The business model is centered on domestic in-situ recovery (ISR) extraction, leveraging a network of licensed central processing plants (CPPs). This "hub-and-spoke" operational approach allows for processing materials from multiple satellite facilities, creating significant operational synergies and adaptability. The organization utilizes a proprietary, environmentally conscious ISR process employing an oxygen and sodium bicarbonate lixiviant at a near-neutral pH, distinguishing it from competitors who may use harsher chemicals. Further technological differentiation is achieved through the use of low-temperature, zero-emission rotary vacuum drying systems for final product preparation, similar to those used in the pharmaceutical industry. This focus on advanced, lower-impact technology and a multi-facility operational framework positions the company as one of only a few domestic producers with more than one operational extraction facility. The enterprise's structure is designed for phased growth and rapid response to market conditions, supported by its integrated processing capabilities and strategic asset base.

The corporate strategy focuses on building domestic extraction capacity through a phased development of a series of production facilities, complemented by selective, accretive merger and acquisition activities. Since December 2020, the company has completed 4 significant transactions to drive growth and shareholder value. A key strategic pillar involves streamlining operations and rationalizing the asset base through a non-core asset divestment program, which provides non-dilutive funding to strengthen the financial position. Operational priorities emphasize optimizing extraction results and managing costs through continuous improvement systems. The commercial strategy formalizes a strong baseload contracting approach, leveraging its status as a reliable multi-facility domestic supplier to secure revenue irrespective of market volatility. Management aims to grow its contract portfolio with new multi-year, hybrid, market-based agreements that maximize profit potential while protecting against price declines, ensuring a stable income base to support sustained operations and future expansion over the next decade.

Executive leadership recently transitioned, with the Chief Legal Officer, Robert Willette, appointed as Acting Chief Executive Officer on March 2, 2025, succeeding the former CEO. Mr. Willette brings extensive legal, compliance, and corporate governance experience from his prior roles as Chief Legal Officer at ProFrac Holdings Corp. and CARBO Ceramics, Inc. The governance framework is adapting to new regulatory requirements after the company became a domestic issuer and a large accelerated filer as of January 1, 2025, making it subject to Sarbanes-Oxley Act (SOX) compliance. In its first assessment under these new standards, management identified material weaknesses in its internal control over financial reporting for the year ended December 31, 2024, related to general information technology controls and process-level controls. A comprehensive remediation plan is underway, involving the hiring of additional trained resources, engaging third-party consultants to enhance control design and testing, and implementing new policies and monitoring activities to strengthen the control environment. The Audit Committee of the Board of Directors provides oversight for these remediation efforts and other risk management functions.

The organization's sustainability approach is anchored in its use of in-situ recovery (ISR) technology, which is characterized as a minimally invasive and environmentally responsible extraction method. This process utilizes a lixiviant composed of oxygen and sodium bicarbonate in native groundwater, avoiding harsher chemicals and operating at a near-neutral pH to minimize environmental impact. A key environmental commitment involves a comprehensive groundwater restoration process using reverse osmosis technology, which preserves approximately 95% of the groundwater at the conclusion of the full production and restoration cycle. In October 2024, the company released its inaugural sustainability report, which included a preliminary assessment of Scope 1 and 2 greenhouse gas emissions. This report establishes a commitment to complete a full baseline assessment of Scope 1, 2, and 3 emissions by the end of calendar year 2026. The company also focuses on human capital development, offering employees ongoing training, continuing education, and opportunities for internal promotion to attract and retain talent.

The corporate structure has been actively shaped by strategic transactions. In February 2023, the company completed a major asset acquisition from Energy Fuels for $120 million, consisting of $60 million in cash and a $60 million secured convertible promissory note. This was followed by a strategic divestiture in July 2023, when the organization sold its subsidiary, Neutron Energy, Inc., to Anfield Energy, Inc. for cash and equity consideration. A significant joint venture was formed in February 2024, when the company sold a 30% interest in its Alta Mesa and Mesteña Grande projects to Boss Energy for $60 million, creating the JV Alta Mesa LLC, for which the company serves as manager with a 70% retained interest. This partnership also included a direct equity investment of $10 million from Boss Energy into the company. The company's acquisition of Azarga Uranium Corp. was finalized in 2021. Operationally significant subsidiaries include Metamin Enterprises US Inc., which holds various prospective properties, and UColo, which holds key project assets.