Neo Energy Metals plc (formerly Stranger Holdings PLC), the near-term, low-cost uranium developer, is pleased to announce that its audited accounts for the 18 months ended 30 September 2023 (the “period”) have been approved and extracts are attached to this announcement. They are available in full on the Company’s website at https://neoenergymetals.com.
HIGHLIGHTS
· Focus during the period was on finalising the reverse takeover (“RTO”) transaction with Stranger Holdings to pave the way for the successful listing of NEO Energy Metals (“NEO”) on the London Stock Exchange’s main market.
· 22 June 2023: Secured committed equity funding of £3.5 million from Q Global Commodities Group (‘QGC’), one of South Africa’s leading independent commodity, mining, logistics and investment funds.
o QGC’s £3.5 million of equity funding was the minimum required to complete the transaction, including obtaining approval of the Prospectus relating to the transaction by the Financial Conduct Authority (“FCA”)
o Allowed the Company to seek to raise up to £1.4 million of further equity funding through its UK based broker and advisors in the UK and Kenya.
SUBSEQUENT EVENTS
· 2 October 2023: Prospectus approved by the FCA and published by the Company in respect of:
o the proposed acquisition of up to a 70% interest in the Henkries Uranium Deposit and Prospecting Right in the Republic of South Africa;
o the issue of 1,070,601,468 Ordinary Shares in connection with a placing and conversion of debt into equity;
o admission of 1,216,371,468 Ordinary Shares of £0.0001 par each to the Official List (by way of Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange’s Main Market for listed securities; and
o The name of the Company was changed to Neo Energy Metals PLC.
· 9 November 2023: Transaction completed with the Company’s shares re-admitted to trading on the London Stock Exchange under its new name Neo Energy Metals PLC.
o Raised £4.9 million as part of the RTO process through a Subscription for Shares and a Placing of Shares at 1.25 pence per Ordinary Share.
o Board strengthened with the appointment of Jason Brewer (Non-Executive Chairman), Sean Heathcote (Chief Executive Officer & Director), and Jackline Muchai (Non-Executive Director).
· 10 November 2023: Raised an additional £500,000 by way of a Subscription at a price of 1.25 pence per Ordinary Share.
CHAIRMAN’S STATEMENT
The 18 month period under review was immensely busy as we worked towards finalising the reverse takeover transaction with Stanger Holdings to pave the way for the successful listing of NEO Energy Metals (“NEO”) on the London Stock Exchange’s main market on 9 November 2023.
A significant milestone in this process was securing a cornerstone investment of £3.5million in June 2023 from Q Global Commodities Group (‘QGC’), one of South Africa’s leading independent commodity, mining, logistics and investment funds.
Led by Quinton Van de Burgh, a highly successful South African entrepreneur with nearly two decades of mining experience and a track record of developing over 47 projects, including two large-scale mining companies, this marked QGC’s inaugural investment in uranium. It was clear from the outset that QGC’s exemplary record in South Africa’s mining sector would be a huge benefit to the Company. It’s firm commitment to advancing green technologies and renewable energies, by the ethical, sustainable, and responsible mining of critical metals also means we have a cornerstone investor which shares NEO’s ethos and ambitions.
The support from QGC not only played a pivotal role in advancing NEO’s listing but also facilitated an additional £1.4 million fundraising through our UK brokers and clients of Gathoni Muchai Investments Limited, a mining investment group based in East Africa. The cumulative £4.9 million of funding is enabling NEO to accelerate the development of its low-cost, near-term Henkries Uranium Project in the Northern Cape Province of South Africa, with a development decision expected within two years.
Following the successful reverse takeover and NEO’s admission to the main board London Stock Exchange as its first uranium exploration company on 9 November 2023, we have initiated work to expand the Henkries Project’s Mineral Resource. Less than 10% of the prospective ground has been fully tested, making the potential for new uranium discoveries substantial. Additionally, we have commenced work to update the positive feasibility study completed by Anglo American, underscoring our commitment to fast-tracking production.
This strategic groundwork positions NEO for future growth at an opportune time. The imperative to enhance energy security and reduce emissions has bolstered the case for nuclear energy. It is recognised as the cleanest, cheapest, and safest form of mass power generation. With approximately 10% of global power generation sourced from nuclear energy (rising up to 70% in advanced economies like France), and a significant portion of new reactors under construction in Asia, the demand for uranium is set to rise.
Meanwhile, with inventories depleting and no new deposits coming into production, the need for increased uranium mining is evident. This is reflected in the uranium prices reaching a 17-year high, with rates hitting $106 a pound in late January 2024, marking a significant increase over the past few months.
NEO is well-positioned to capitalise on this opportunity and that is thanks to the collective efforts of many individuals, and the support and belief of both new and existing shareholders. As we look ahead, we remain committed to driving sustained growth, innovation, and value for our stakeholders, and we appreciate the continued trust placed in NEO.
Jason Brewer
Non-Executive Chairman
