Neo Energy Metals PLC is acquire the Beisa uranium project from Sibanye-Stillwater
Neo Energy Metals PLC () is to acquire the Beisa uranium project from Sibanye-Stillwater for £22 million in cash and loan notes. The transaction is subject to rule 9 of the Takeover Code, but if approved, the loan notes will be transferred to New Energy’s local subsidiary as an inter-company loan, while nearly a billion new shares will be issued to Sibnanye-Stillwater.
The Beisa uranium project is situated between, and adjoins the Beisa North and Beisa South uranium projects which Neo Metals acquired in September.
The acquisition brings Neo Energy’s total resource base to over 117 million pounds of uranium and 5.4 million ounces of gold, extending across over 25 kilometres of strike length of the Beisa Reef.
Beisa comprises the Beatrix 4 mine and Shaft Complex, the processing plant complex and associated infrastructure in the Witwatersrand Basin, in the Free State Province of South Africa.
On completion of the transaction, Sibanye-Stillwater will become Neo Energy’s largest shareholder and have the right to appoint directors to the board. Sibanye-Stillwater will also hold pre-emption rights of first refusal in respect of any proposed new equity issuance by the company.
The Beisa uranium project has total SAMREC code compliant measured resources of 8.5 million pounds of uranium and 400,000 ounces of gold, as well as indicated resources of 18.3 million pounds of uranium and 800,000 ounces of gold.
The acquisition of Beisa completes Neo Metals’ immediate goal to acquire and consolidate the entire resource base of the Beatrix 4 Shaft Complex and Beisa North and South uranium projects.
The plan is to pursue low cost, near-term uranium production from the Beisa uranium project and to establish Neo Metals as South Africa's leading uranium mining company.
The Beatrix 4 Shaft Complex is fully permitted, with all licenses, permits and authorisations to be transferred to the Company's operating subsidiary ahead of operations recommencing.
There are also significant amounts of tailings present.
"This transaction with Sibanye-Stillwater is a landmark one for Neo Energy Metals and its shareholders,” said Neo Energy Metals executive chairman Jason Brewer.
"To have secured such a strategic asset, which consolidates our position in the Witwatersrand Basin, the heart of South Africa's uranium industry, is a major accomplishment and I believe truly sets us apart from many other uranium development companies and further sets us firmly on the path to being one of the next uranium production companies in the world.”
View from Vox
This is a transformative deal from Neo Metals, which now looks to become one of southern Africa’s major uranium players. The support of Sibanye-Stillwater, a company with a market capitalisation of not far off US$3 billion, is likely to prove very significant, as the Beisa assets are moved forward towards production. Several technical studies have already indicated the economic viability of Beisa, although there is some work remaining. The company’s shareholders have much to look forward to.
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