The deal starts in 2025 and covers up to 600,000 pounds of U3O8 based on market pricing with a floor price "that assures our costs of production are met in today's economic environment", the company said.
The deal—which is with a US based nuclear power company, made following a site visit to the Texan operation—also includes an inflation adjusted ceiling price higher than the current uranium spot market pricing.
"With the supply chain disruptions for nuclear fuel resulting from serious geopolitical events, US utilities need domestic supply to achieve greater certainty of supply," enCore's CEO Paul Goranson said.
The company's Rosita plant, about 60 miles from Corpus Christi, Texas, is a licensed past-producing ISR uranium plant currently going through a modernization and refurbishment with a target completion date of Q2/2022. Production is scheduled it begin in 2023.
The purchase sales agreement is the third of its kind executed by enCore.
Encore's share price was C$1.14 (US$1.14) on June 29, giving the company a market capitalization of C$366.65 million.