REG - Neo Energy Metals - Beisa Acquisition - To Complete Ahead of Schedule

Neo Energy MetalsAnnouncement

30/08/2024 14:15

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RNS Number : 3543C  Neo Energy Metals PLC  30 August 2024

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

 

30 August 2024

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. 80km(2).

 

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 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

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.

 

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 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 - AcaciaCap Advisors   michelle@acaciacap.co.za

 Tel: +27 (0) 11 480 8500

 

 

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