LONDON - Neo Energy Metals PLC (LSE: NEO), a uranium mining company, announced today the acquisition of the Beisa Uranium Project from a subsidiary of Sibanye Stillwater (NYSE:SBSW) Limited, marking a significant expansion of its mining operations in South Africa. The deal includes a 100% interest in the Beatrix 4 mine and shaft complex, processing plant, and associated infrastructure, located in the Free State Province.
This strategic acquisition positions Neo Energy to fast-track the re-commencement of uranium and gold mining operations, with the Beatrix 4 Shaft Complex being fully permitted and ready for operations to recommence. The Beisa Uranium Project boasts measured and indicated resources totaling 26.9 million pounds of uranium and 1.2 million ounces of gold as per SAMREC Code Compliant Mineral Resources as of December 31, 2023.
Sibanye-Stillwater, listed on both the New York and Johannesburg Stock Exchanges, will become Neo Energy’s largest shareholder post-transaction, holding rights to appoint directors to Neo Energy's Board and maintaining pre-emption rights to preserve its shareholding in future equity issuances.
The Beisa Uranium Project is situated between the Beisa North and Beisa South Uranium Projects, which were recently acquired by Neo Energy, as announced on September 27, 2024. The integration of these assets gives Neo Energy control over significant uranium and gold resources across a 25km strike length of the Beisa Reef.
The acquisition includes a hoisting capacity of 140,000 tons per month and infrastructure that supports mining operations, such as roads and power lines. The existing tailings storage facility has been reviewed and is deemed appropriate for future use, subject to environmental approvals. Neo Energy has also assumed the rehabilitation costs associated with the facility and shaft complex.
Jason Brewer, Executive Chairman of Neo Energy Metals, expressed confidence in the acquisition's potential to create value for shareholders and contribute to local economic development. The company is set to focus on updating development studies for the Beisa Uranium Project and anticipates releasing an updated plan in the second half of 2025, aiming for an annual production of 1-3 million pounds of uranium and up to 100,000 ounces of gold over an initial 20-year mine life.
The acquisition is subject to regulatory approvals in South Africa and the UK, including a Rule 9 Waiver and shareholder approval at a general meeting scheduled for Q1 2025. Settlement of the acquisition and satisfaction of all conditions are expected to be completed in late H2 2025.
Neo Energy also plans to finalize debt and commodity-based funding to support the acquisition costs and working capital for the Beisa Uranium Project, as well as other projects in its portfolio. Further updates on funding are anticipated.
This news is based on a press release statement from Neo Energy Metals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.