Neo Energy, the near term, low-cost uranium developer, confirms 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. 80km2 in the Witwatersrand Basin, in the Free State Province of South Africa.
The video is an update from Jason Brewer, Chairman of Neo Energy Metals, discussing the progress and future plans for their uranium projects.
Key points from the video include:
- HRE Project:
- The HRE project has a resource of about 5 million pounds of uranium.
- A drilling contract is being finalized, with 6,000 meters of drilling expected to be completed in the final quarter of 2024.
- The company anticipates a significant increase in resources by the end of the year, with assay results from previous drilling also expected to contribute.
- Production Timeline:
- The company does not expect to begin production until 2025.
- The focus for the remainder of 2024 is on drilling and expanding infrastructure at the Henrys site.
- Financials:
- The company has sufficient capital for the drilling program and does not anticipate needing to raise additional funds.
- Market Interest and Collaborations:
- There has been considerable interest in the project from European groups, particularly concerning the Basa project in South Africa.
- Discussions are ongoing with multiple parties, including Harmony Gold, regarding potential collaborations and developments in the region.
- Regulatory Approvals:
- The formal documentation for the Basa project is expected to be completed in the next four weeks, with regulatory approvals to follow, which may take several months.
- Strategic Focus:
- The company is prioritizing the Basa North project due to its shallow resources and is progressing with additional acquisitions that will clarify their development plans for shareholders and investors.
