REG - Neo Energy Metals - Agreement Signed - 90Mlb Beisa Uranium acquisition

Neo Energy MetalsAnnouncement

27/09/2024 14:00

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RNS Number : 0738G  Neo Energy Metals PLC  27 September 2024

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

 

27 September 2024

Neo Energy Metals plc

('Neo Energy' or 'the Company')

 

Formal Documentation Signed for 90Mlb Uranium Acquisition at Beisa North
and Beisa South

Neo Energy Metals plc, the near term, low-cost uranium developer, is pleased
to confirm that it has now signed the formal acquisition documentation to
purchase 100% interests in the Beisa North Uranium Project and Beisa South
Uranium Project (together the 'Beisa Projects'), located in the Witwatersrand
Basin in the Free State Province, in South Africa.

As announced on 30 August 2024, the Company, its Advisors and South African
based lawyers, were finalising the formal acquisition documentation with
Sunshine Mineral Reserve (Pty) Limited ('Sunshine') to acquire the Beisa
Projects which comprises 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
approximately 80km(2).

The Company, its South African subsidiary, Neo Uranium Resources Beisa Mine
(Pty) Limited ('NURB') and Sunshine have now signed the Sale of Assets
Agreement ('Agreement'), under which it has acquired the two Beisa Projects
Prospecting Rights, subject to receiving regulatory approval under Section 11
of the Mineral and Petroleum Resources Development Act ('MPRDA') for the
ownership transfer to the Company's subsidiary, NURB. Applications for the
Section 11 approval are being finalised and will be lodged shortly by the
Company with the assistance of its Advisors and Sunshine's management. Final
negotiations and documentation with two Broad Based Black Economic Empowerment
('B-BBEE') groups in respect of their participation in the Beisa Projects are
also progressing well and will be completed later in Q4 2025.

The signing of the Agreement is a major step forward by the Company in
delivering on its strategy of establishing Neo Energy as South Africa's
leading uranium mining company and one of Africa's major uranium mine
operators and developers.

The acquisition of the Beisa Projects firmly positions the Company in South
Africa's primary producing uranium region where there has been over 70 years
of continuous uranium production, and where it is looking to further
consolidate itself with additional acquisitions in one of the world's major
uranium producing regions.

 

Sean Heathcote, Neo Energy Metals CEO said:

"The Beisa North and Beisa South Uranium Project acquisitions are
transformative for the Company.

I'm delighted that we have now signed the formal acquisition documentation,
and I would like to thank all our Advisors, Legal Team as well as the
Management Team at Sunshine for the work that has taken gone in over the past
eight weeks in getting this completed.

The Beisa Projects contains over 90 million pounds of uranium resources and
over 4 million ounces of gold resources and are located on two granted
Prospecting Rights, over an area of approximately 80km(2) in South Africa's
primary uranium producing region. Importantly this is a region where uranium
has been mined continuously for over 70 years and where at its peak there were
over 40 uranium mines in production. It is also historically one of the
richest gold-producing regions in the world, having produced about 2 billion
ounces of gold over more than a century. It truly is a great place for Neo
Energy to strategically consolidate its position in South Africa's uranium
sector.

We will now look to progress the regulatory process with the South Africa
authorities and commence work at the Beisa North and South Projects.  In
parallel with this, we will look to finalise some of the additional
acquisitions, that I believe will further strengthen our position in the
region and demonstrate our intent in South Africa's uranium sector.

As we move forward, our commitment to innovation, operational excellence, and
responsible resource management remains steadfast and we look forward to
working closely with all our stakeholders to ensure the successful advancement
of Beisa North and Beisa South, setting a strong foundation for future growth
and value creation."

ENDS

About NEO Energy Metals Plc

Neo Energy 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 by some that the historical investment in the project was
over US$30 million in exploration and feasibility studies. Neo Energy aims to
increase the project's mineral resources and complete an updated feasibility
study with the aim of bringing Henkries into production in the shortest
possible timeframe.

The Company also holds a 100% interest in the Beisa North and Beisa South
Uranium and Gold Projects in the Witwatersrand Basin, located in the Free
State Province of South Africa. The combined projects record a total SAMREC
Code compliant resources of 90.24 million pounds ('Mlbs') of U₃O₈ and 4.17
million ounces ('Mozs') of gold.

 

Neo Energy is led by a proven board and management team with experience in
uranium and mineral project development in Southern Africa. Their strategy
focuses on an accelerated development and 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.

The Company's shares are also listed on the A2X Markets (A2X: NEO), an
independent South African stock exchange, to enable the Company to expand its
investor base and facilitate strategic acquisitions of uranium projects,
particularly within South Africa.

For Enquiries Contact:

 Sean Heathcote                Chief Executive Officer                sean@neoenergymetals.com

 Jason Brewer                  Executive Chairman                     jason@neoenergymetals.com
 Faith Kinyanjui               Investor Relations                     faith@neoenergymetals.com
 Tel: +44 (0) 20 7236 1177
                Michelle Krastanov            Corporate Advisor (SA)  michelle@acaciacap.co.za

                Tel: +27 (0) 11 480 8500
                Jason Robertson               Broker (UK)             jasonrobertson@firstequitylimited.com

Tel: +44 (0) 20 7330 1883

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