Rns30 Aug 2024 14:11
Neo Energy Metals plc
('Neo Energy' or 'the Company')
Acquisition Documentation On-Track to be Completed Ahead of Schedule
Neo Energy, the near term, low-cost uranium developer, is pleased to provide an update on its progress with the formal acquisition documentation and regulatory approval process in respect of its acquisition of the Beisa North and Beisa South Uranium and Gold Projects (together the 'Beisa Projects') located in the Witwatersrand Basin, in the Free State Province of South Africa.
As announced on 13 August 2023, the Company has signed a binding agreement ('Agreement') with Sunshine Mineral Reserve (Pty) Limited ('Sunshine') to acquire the Beisa Projects. The Beisa Projects comprise total SAMREC Code compliant resources of 90.24 million pounds ('Mlbs') of U₃O₈ and 4.17 million ounces ('Mozs') of gold and are located on two granted Prospecting Rights, extending over an area of approx. 80km2.
The Company is pleased to advise that, with its Advisors and South African based lawyers, the formal acquisition documentation with Sunshine is well advanced and is expected to be completed and signed ahead of schedule before 30 September 2024.
In addition, the Company and its Advisors are preparing the necessary applications and submissions to seek approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act ('MPRDA') for the ownership transfer of two granted Prospecting Rights that make up the Beisa Projects to Neo Uranium Resources Beisa Mine (Pty) Limited, the Company's recently incorporated subsidiary, which was established to complete the Beisa Projects acquisitions.
In accordance with South Africa's Broad Based Black Economic Empowerment ('B-BBEE') legislation, which is designed to both facilitate broad based economic participation of Historically Disadvantaged South Africans in the South Africa economy, promote and broaden economic growth and create long-term sustainable employment, the Company and its Advisors are liaising with a number of B-BBEE groups in respect of their participation in the Beisa Projects. Further updates on this are expected in due course.
Neo Energy Metals Chief Executive Officer Sean Heathcote commented:
"It is very pleasing to see the speed at which this acquisition is proceeding and we are confident that the formal documents will be signed by all parties ahead of schedule this quarter.
We are also working well with our Corporate Advisors and Legal representatives in South Africa to complete all the necessary applications and submissions for the applicable regulatory approvals. Concurrent with this, we are also having positive meetings with a number of B-BBEE groups on the Beisa Projects and the Company's broader strategy in South Africa.
We look forward to completing all these steps and updating our shareholders and key stakeholders on the acquisition progress."
This announcement contains inside informatio