REG - Neo Energy Metals - Formal Documents Signed for Henkries South Uranium

Neo Energy MetalsAnnouncement

07/03/2025 11:00

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RNS Number : 8489Z  Neo Energy Metals PLC  07 March 2025

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

 

7 March 2025

Neo Energy Metals plc

('Neo Energy' or 'the Company')

 

Formal Documentation Signed for Henkries South Uranium Project Acquisition

Share Issue for Acquisition

 

Neo Energy, the near term, low-cost uranium developer, is pleased to
announce that formal legal documentation in respect of its acquisition of 100%
in the Henkries South Uranium Project ('Henkries South') located in the
administrative district of Namaqualand in the Northern Cape Province of South
Africa, has now been signed.

Further to the RNS dated 14 October 2024, a formal Share Sale and Purchase
Agreement ('Agreement') and associated Board and Shareholder resolutions have
now been signed by the Company, and also by a South African uranium
exploration company, namely Eagle Uranium SA (Pty) Limited ('Eagle Uranium')
and by Eagle Uranium's Shareholders. Under the Agreement, the Company has now
conditionally acquired a 100% shareholding in Henkries South, with the only
outstanding condition, being the applicable regulatory approvals that are
expected to be issued in the ordinary course of business and include approval
in terms of Section 11 of the Minerals and Petroleum Resources Development Act
("MPRDA") of 2002.

Henkries South comprises a single, 1,050 square kilometre ('km(2)') granted
Prospecting Licence that is immediately south of the Company's existing
Henkries Uranium Project. The acquisition of Henkries South not only
materially increases the Company's strategic landholding in the region to
almost 1,800km(2), it also adds a further 10km strike length of shallow
paleo-channels which have been demonstrated to host the shallow uranium
mineralisation at the Company's Henkries Project. In addition, previous
exploration and assessment by the Company's technical management team has
shown that Henkries South contains multiple and extensive radioactive
anomalies which are expected to add significantly to the resource potential at
the now significantly expanded Henkries Project.

The Company will now proceed with the issue of 125 million shares to the Eagle
Uranium Shareholders and Advisors ('Acquisition Shares'), pay a cash
consideration of ZAR 1.5 million (approximately £65,000), and repay an
additional amount of ZAR1.7 million (approximately £73,000) of Eagle
Uranium's existing indebtedness and obligations, including licence fees. A
further 50 million shares are to be issued to Eagle Uranium and Advisors, upon
the transfer of the Henkries South mineral rights to the Company's wholly
owned subsidiary Neo Uranium Resources South Africa (Pty) Ltd. All shares are
to be issued at a price of 1.25 pence and will be subject to a three-month
lock-in period, effective from the date of share issuance.

Neo Energy Metals Chief Executive Officer Sean Heathcote said:

"We are pleased to have finalised the Agreement for the formal documentation
regarding the acquisition of 100% of the Henkries South Uranium Project. This
marks a significant milestone in our growth strategy within South Africa's
uranium sector, reinforcing our commitment and strengthening our presence in
one of the country's most promising uranium regions.

"We are eager to accelerate exploration and advance new mine development in
this area. Henkries South presents exciting opportunities as we continue
executing our vision of building a leading uranium-focused company in Africa,
and we look forward to providing further updates on our progress."

Admission

Application has been made for the Acquisition Shares to be admitted to trading
on the London Stock Exchange on or around 14 March 2025 ('Admission') and will
rank pari passu with the ordinary shares of the Company in issue.

Total voting rights

Following Admission, the Company's issued share capital will comprise
1,619,002,668 ordinary shares of 0.01p each, with each share carrying the
right to one vote, therefore the total number of voting rights in the Company
will be 1,619,002,668.  This figure may be used by Shareholders as the
denominator for calculations by which they will determine if they are required
to notify their interest in the Company, or a change to their interest in the
Company, under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation, and the Directors of the Company are responsible for
the release of this announcement.

 

ENDS

About NEO Energy Metals Plc

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 and its South African Subsidiaries', namely Neo Uranium Resources
Beisa Mine (Pty) Limited and Neo Uranium Resources South Africa (Pty)
Ltd have continued to strengthen the uranium portfolio through conditional
agreements for the acquisitions of; 100% interest in the Beisa North
and Beisa South Uranium and Gold Projects and 100% interest in the Beatrix
4 mine and shaft complex, the processing plant complex and associated
infrastructure in the Witwatersrand Basin, located in the Free State Province
of South Africa. The combined projects total SAMREC Code compliant resource
base comprises, 117 million pounds of U₃O₈ and over 5 million ounces of
gold.

Additionally, 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 and a 100% interest in the Henkries South Uranium Project,
extending the Henkries Project's strike length by 10km to a total of 46km of
shallow paleo-channels proven to host uranium mineralisation through extensive
drilling and feasibility studies backed by US$30 million in historic
exploration and development expenditure.

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 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 expand its investor base and
facilitate strategic acquisitions of uranium projects, particularly within
South Africa.

 

For Enquiries Contact:

 Jason Brewer                Executive Chairman                      jason@neoenergymetals.com
 Sean Heathcote              Chief Executive Officer                 sean@neoenergymetals.com
 Faith Kinyanjui             Investor Relations                      faith@neoenergymetals.com
 Michelle Krastanov          Corporate Advisor - AcaciaCap Advisors    michelle@acaciacap.co.za

 Tel: +27 (0) 11 480 8500

 

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