REG - Neo Energy Metals - Due diligence completed on Beisa North & South

Neo Energy MetalsAnnouncement

16/08/2024 07:00

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RNS Number : 6784A  Neo Energy Metals PLC  16 August 2024

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

 

16 August 2024

Neo Energy Metals plc

('Neo Energy' or 'the Company')

Due Diligence Completed on Beisa North and South Uranium-Gold Projects

Formal Acquisition Documentation Underway

Neo Energy, the near term, low-cost uranium developer, is pleased to confirm
that it has satisfactorily completed its technical, financial and legal due
diligence on the acquisition of a 100% interest in the multi-million pound
uranium and multi-million ounce gold resources of the Beisa North and Beisa
South Uranium and Gold Projects (together the 'Beisa Projects').

 

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) in the Witwatersrand Basin,
in the Free State Province of South Africa.

 

The acquisition of the Beisa Projects was subject to the completion of a due
diligence by the Company by no later than 31 August 2024. The completion of
this due diligence, ahead of schedule, marks a significant milestone in the
advancement of the Beisa Projects and the Company's strategy to become South
Africa's leading uranium mining company and a major player in Africa's uranium
sector.

 

The Company, its advisors and South African lawyers are now finalising the
legal documentation for the acquisition. The Company anticipates the signing
to be completed by no later than 30 September 2024.

 

Highlights:

·    Satisfactory and positive due diligence completed ahead of schedule
on the Beisa Projects

·    Due diligence confirms the robust uranium and by-product gold
resources and technical merits of the Beisa Projects

·    The due diligence process involved a thorough review and evaluation
of historical resources reports and supporting data as well as the legal and
environmental considerations of the Beisa Projects and the granted Prospecting
Rights in place

·    Executive members of the Company's management team and its
representatives in South Africa further completed site visits to the region
and were able to visit some of the adjoining areas with existing mining and
processing infrastructure

·    The due diligence work undertaken by the Company has confirmed the
significance of the high-grade uranium resource and associated gold resource,
which is located in South Africa's primary uranium producing region and one of
the world's most established and largest gold-producing regions

·    The technical due diligence work completed included amongst other
things, a review of the August 2023 SAMREC Code Compliant Resource Report
which reported total inferred resources at the Beisa Projects of 90.24 Mlbs of
U₃O₈ and 4.17 Mozs of gold

·    It further included a review and assessment of the potential
standalone underground operation at Beisa North, which has total resources of
31.36 Mt of ore and 57.23 Mlbs of U(3)O(8) at an average grade of 830 ppm and
2.05Mozs of gold at an average grade of 2.03 g/t

·    The review also highlighted the potential upside that exists at Beisa
South, as well as the need for further work to be undertaken on the existing
resources of 33.1 Mlbs of U₃O₈ and 2.12 Mozs of gold

·    With the technical, financial and legal due diligence now completed
ahead of schedule, the Company is now working with its lawyers and South
African advisors to finalise the formal acquisition documentation with
Sunshine

·    The Company remains on track to sign this formal documentation with
Sunshine by no later than 30 September 2024

 

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 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:

 

 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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