Boss Energy extends loan deal with Alta Mesa partner enCore Energy
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The news: Uranium miner Boss Energy has extended its existing loan agreement with its joint venture partner enCore Energy, to help the US uranium play finance the ramp up of the companies' co-owned Alta Mesa project in Texas.
The numbers: Under the original terms, Boss loaned enCore 200,000 pounds of uranium, which was to be repayable to Boss in kind or cash.
Since the loan agreement was made, enCore has repaid USD11.9 million ($18.1 million) in cash, with USD10.4 million currently outstanding.
Boss said it will extend the repayment date of the existing loan to 27 December and provide a new additional cash facility of USD3.6 million.
The context: The Alta Mesa project is managed by enCore, which owns a 70% stake, while Boss owns the remaining 30%.
In the event of a default on the loan, Boss said it has the option to either call for the immediate repayment in cash, or elect to convert the outstanding debt into a controlling 51% interest in Alta Mesa and become the manager of the joint venture.
What they said: "Boss is pleased to support our JV partner with an extension to the uranium loan agreement which will provide enCore with additional financial flexibility during the ramp up of Alta Mesa in order to meet its offtake obligations," said Boss managing director Duncan Craib.
"With a strong balance sheet, and Honeymoon achieving key production milestones, Boss is in a favourable position to provide this facility to enCore," he said.
The source: ASX
