enCore Energy (TSXV: EU) might have a major problem on its hands after today’s elections are concluded. A ballot measure within Fall River County looks to derail their entire Dewey-Burdock project within South Dakota.
The ballot measure seeks to ban uranium mining within the Fall River County, where the Dewey-Burdock project is located. The measure was tabled after a petition with 448 valid signatures was signed by local residents, although only 260 signatures were required in order for it to be tabled.
The measure, if approved by residents, would label uranium mining as a public nuisance, and bar the practice from occurring in the county. It would enable any interested party to take legal action to halt the “nuisance.” The local measure comes despite both state and federal permitting that approve of the proposed mining project.
The ballot measure is said to be aimed directly at Powertech USA, which is a subsidiary of enCore’s, whom is looking to develop the Dewey-Burdock project into an in-situ uranium mine, which local proponents say would negatively impact the water table. Locals have gone as far as to challenge the firms permits in court, however in August the most recent decision, related to the firms license to extract uranium, confirmed that the company has a license to extract the mineral.
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READ: enCore Energy Enters Uranium Supply Agreement For Up To 600,000 lbs U3O8
If constructed, the project is expected to produce 14.3 million pounds of U3O8 over 16 years, with the project having a pre-income NPV of $171.3 million.
enCore Energy last traded at $3.30 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
