REG - Neo Energy Metals - Erudite Appointed to Update Capex & Opex Estimate

Neo Energy MetalsAnnouncement

15/04/2024 07:00

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RNS Number : 5299K  Neo Energy Metals PLC  15 April 2024

Neo Energy Metals plc / LSE: NEO,  A2X: NEO / Market: Main Market of the
London Stock Exchange

 

15 April 2024

Neo Energy Metals plc

('Neo Energy' or 'the Company')

 

Erudite Strategies Appointed to Update Capex and Opex Estimate

 

Expediting early production plans at Henkries Uranium Project in South Africa

 

Neo Energy Metals plc, the near term, low-cost uranium developer, is pleased
to announce that it has appointed Pretoria-based Erudite Strategies
('Erudite') to compile an updated Order of Magnitude Capex and Opex estimate
for Neo Energy's Henkries Uranium Project ('Henkries' or 'the Project') in
South Africa. This involves updating the financial evaluation report for the
Project originally produced by Anglo American Corporation in 1979.

 

Erudite is a leading provider of Engineering, Procurement, and Construction
Management ('EPCM') solutions with an international blue-chip mining client
list. Erudite was selected based on its uncompromising commitment to safety
and its ability to design both a fit for purpose and environmentally
sustainable project solution. During the selection process, Erudite
demonstrated a comprehensive understanding of the Company's needs for a
fast-track and modular approach to Henkries with the ability for flexibility
in the possible execution strategies.

 

The circa four week project will incorporate the development of a capital cost
estimate and budgetary quotes for any long-lead equipment, which will include
a preliminary cost estimate and delivery schedule.

 

Neo Energy CEO Sean Heathcote said, "We are delighted to be working with
Erudite; its focus on safety, environmental sustainability, and understanding
of the unique needs of Henkries align perfectly with our objective to expedite
early production at this exciting uranium project.

 

"While Anglo American moth-balled the Project in the late 1970s following a
downturn in demand for uranium, the landscape for uranium has changed greatly
with the market witnessing a significant resurgence fuelled by the growing
recognition of nuclear's role in carbon emission reduction. This positions
Henkries as one of the few projects globally poised to commence production in
the near term. Accordingly, we look forward to incorporating the updated
estimates provided by Erudite into our financial models within an updated
feasibility study ahead of paving the way for strategic development.

 

"The insights and expertise provided by Erudite will be essential in enhancing
the understanding and assessment of the Project's capital expenditure and
operational expenses. This strategic move reflects Neo Energy's commitment to
thorough and accurate financial planning for Henkries."

 

ENDS

 Sean Heathcote                                   CEO                      sean@neoenergymetals.com

                                                  Neo Energy Metals plc
 Isabel de Salis / Paul Dulieu / Isabelle Morris  Financial PR             neo@stbridespartners.co.uk

                                                  St Brides Partners Ltd

 

 

Notes

Neo Energy Metals plc is a Uranium developer and mining company listed on the
main market of the London Stock Exchange (LSE: NEO). The Company holds up to a
70% stake in the Henkries Uranium Project, an advanced, low-cost mine located
in South Africa's Northern Cape Province. It has been estimated that over
US$30 million of historical investment has been made in the Project to
undertake exploration and feasibility studies.  Neo Energy now aims to
increase the Project's mineral resources and complete an updated feasibility
study ahead of determining a development schedule at the end of 2024 to
swiftly bring Henkries into production.

 

The Company is led by a proven board and management team with experience in
uranium and mineral project development in Southern Africa. Neo Energy's
strategy focuses on a two-year production approach to generate cash flow from
Henkries while planning for long-term exploration and portfolio growth in the
highly prospective uranium district of Africa. Additionally, the Company's
shares are listed on the A2X Markets (A2X: NEO), an independent South African
stock exchange, to expand its investor base and facilitate strategic
acquisitions of uranium projects, particularly within South Africa.

 

The team includes:

·    Jason Brewer, Executive Chairman: +30 years' experience in
international mining, financial markets, and investment banking with a
particular focus in Africa.

·    Sean Heathcote, CEO: +30 years' experience in the mining and
exploration industry in Africa across a broad range of commodities.

·    Jackline Muchai, Non-Executive Director: one of the few Kenyan women
serving on a board within London's Main Market on the London Stock Exchange,
and CEO of Gathoni Muchai Investments.

·    Bongani Raziya, Non-Executive Director: +20 years' experience in oil
and gas and mining in Africa with various directorships held in
well-established and profitable companies.

·    James Longley, Non-Executive Director: +30 years' experience in
finance, whose career has been focused on venture capital, private equity and
building growth companies.

·    Charles Tatnall, Non-Executive Director: a seasoned advisor and
fundraiser, specialising in small and medium-sized enterprises across diverse
industries.

·    Quinton van der Burgh, Non-Executive Director: a leading mining
serial entrepreneur in South Africa and founder/CEO of Q Global Commodities,
one of South Africa's largest privately owned mining houses that has
established more than 45 mines throughout Sub-Saharan Africa.

 

 

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