FAQ: Verdera Energy Transaction

In April 2025, enCore agreed to sell certain mineral rights and properties, including the Crownpoint and Hosta Butte projects, to Verdera in exchange for $350,000 and 50,000,000 non-voting preferred shares of Verdera (the “Consideration Shares”), a 2.0% net proceeds royalty on uranium produced from the property, and a 2% net smelter returns royalty on other minerals extracted and sold from the properties.  Verdera has agreed to register the common shares issuable on conversion of the Consideration Shares under the Securities Act of 1933, as amended, and enCore has agreed, subject to the satisfaction of certain conditions, including, but not limited to, the effectiveness of a resale registration statement of Verdera, to elect to convert 35,000,000 Consideration Shares into Verdera common shares (the “Distribution Shares”) and set a record date for, and complete, the distribution of the Distribution Shares to enCore shareholders.

enCore expects to announce the mechanics of the distribution when it announces the record date. In a typical distribution, beneficial holders would receive shares through the brokerage account in which their enCore shares are held, while registered holders would receive instructions through the applicable transfer or registration system. Because the record date has not yet been announced, shareholders should monitor enCore’s public disclosures for the final process. 

Potentially. The tax consequences may vary by shareholder depending on their individual circumstances and jurisdiction. enCore does not provide tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors.