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PLANT AND EQUIPMENT AND MINERAL PROPERTIES
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Plant and Equipment and Mineral Properties PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTIES
The following is a summary of property, plant and equipment, net:
March 31, 2023December 31, 2022
CostAccumulated
Depreciation		Net Book ValueCostAccumulated
Depreciation		Net Book
Value
Property, plant and equipment
Nichols Ranch$29,210 $(20,730)$8,480 $29,210 $(20,221)$8,989 
Pinyon Plain2,058 (746)1,312 1,617 (714)903 
Equipment and other17,196 (12,353)4,843 15,009 (12,239)2,770 
Property, plant and equipment total$48,464 $(33,829)$14,635 $45,836 $(33,174)$12,662 

As of December 31, 2022, the net book value of the property, plant and equipment attributable to Alta Mesa was $8.21 million, which was included in Property, plant and equipment and other assets held for sale, net on the Condensed Consolidated Balance Sheets.
The Company recognized depreciation expense of $0.66 million and $0.81 million for the three months ended March 31, 2023, and 2022, respectively, in Exploration, development and process and Standby in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
For the three months ended March 31, 2023 and 2022, the Company capitalized $0.07 million and $0.05 million, respectively, of depreciation expense related to the Mill that was included in the capitalized costs to inventory on the Condensed Consolidated Balance Sheet.
The following is a summary of mineral properties:
 March 31, 2023December 31, 2022
Mineral properties
Sheep Mountain$34,183 $34,183 
Bahia Project29,124 — 
Uranerz ISR properties 25,974 25,974 
Roca Honda 22,095 22,095 
Pinyon Plain1,171 — 
Other 1,287 1,287 
Mineral properties total$113,834 $83,539 
Bahia Project
On February 10, 2023, the Company closed on two purchase agreements to acquire a total of 17 mineral concessions in the State of Bahia, Brazil totaling approximately 37,300 acres or 58.3 square miles (the “Bahia Project”). Under the terms of the purchase agreements, the Company entered into mineral rights transfer agreements with the sellers to acquire the 17 mineral sand concessions.
The total purchase price under the purchase agreements was $27.50 million, which consisted of $21.60 million due at closing and prior to closing, deposit payments of $5.90 million due upon reaching certain stipulated milestones. Upon final payment on February 10, 2023, the transfer and assignment of the mineral rights was completed (the “Bahia Closing”). Additionally, the Company incurred direct deal costs related to such asset acquisition of $1.63 million. The purchase deposit payments and direct transaction costs were capitalized as Prepaid expenses and other current assets in the Consolidated Balance Sheets as of December 31, 2022 and reclassified to Mineral properties upon closing within the Condensed Consolidated Balance Sheets. The Bahia Closing followed the Brazilian Government’s approval of the transfers to Energy Fuels’ wholly owned Brazilian subsidiary Energy Fuels Brazil Ltda.
Alta Mesa Transaction
On February 14, 2023, the Company closed on its sale of three wholly owned subsidiaries that together hold Energy Fuels’ Alta Mesa ISR Project to enCore for total consideration of $120 million (the “Alta Mesa Transaction”), paid as follows:
a.$60 million cash, which included $6 million prior to closing and $54 million at closing; and
b.$60 million in the Convertible Note, payable in two years from the closing, bearing annual interest of eight percent (8%). The Convertible Note is convertible at Energy Fuels’ election into enCore common shares at a conversion price of $2.9103 per share, being a 20% premium to the 10-day volume-weighted average price of enCore shares ending the day before the Closing (the “Conversion Option”). enCore is currently traded on the TSX-V and NYSE American. The Convertible Note is guaranteed by enCore and fully secured by Alta Mesa. Unless a block trade or similar distribution is executed by Energy Fuels to sell the enCore common shares received on conversion of the Convertible Note, Energy Fuels will be limited to selling a maximum of $10 million of common shares per thirty (30)-day period.
The Company recognized a gain on sale of assets from the Alta Mesa Transaction of $116.45 million, which is calculated as the total fair value of the consideration received of $119.46 million consisting of $60 million in cash and the Convertible Note with a fair value of $59.46 million, less the net book value attributable to the Alta Mesa ISR project assets and liabilities of $3.34 million, net of transaction costs. Receipt of the Convertible Note represents a non-cash investing activity at its initial fair value. See Note 13 – Fair Value Accounting for more information on the fair value of the Note.
In addition, after the closing of the transaction, enCore was required to replace the $3.59 million of reclamation bonds that existed for the Alta Mesa project. As of March 31, 2023, the Company has received $3.48 million cash as a release of collateral from those bonds, which it has reclassified from Property, plant and equipment and other assets held for sale, net to cash and cash equivalents on its Condensed Consolidated Balance Sheets.
In connection with the Alta Mesa Transaction, on May 3, 2023, the Company completed the sale of its Prompt Fission Neutron assets, including the underlying contracts, technology, licenses and intellectual property (collectively, the “PFN Assets”), to enCore in exchange for cash consideration received at closing of $3.10 million. At closing, the PFN Assets, which the Company had purchased in 2020 for cash consideration of $0.5 million, had a net book value of $0.35 million. The PFN Assets were used exclusively at the Alta Mesa ISR Project. Should the Company have the need for the use of a PFN tool in the future, the Company retained a 20-year usage right as a condition of this sale during which, subject to the availability of the PFN Assets, the Company has the right to purchase, lease and/or license at least one fully functional PFN tool and all related and/or
required equipment, technology and licenses, as reasonably requested, on commercially reasonable terms and conditions no less favorable than those offered by enCore to third parties. As of May 5, 2023, the Company has not purchased, leased and/or licensed a PFN tool.