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South African focussed uranium explorer’s listing a first for LSE

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Core samples drilled at Henkries in the 1970s are part of the historic record at Henkries which will enable Neo Energy Metals to accelerate the project to production in such a short time frame. Image credit: Neo Energy Metals

South African focussed uranium explorer’s listing a first for LSE    

On Thursday, Neo Energy Metals became the first uranium exploration company to list on the London Stock Exchange via a Reverse Take-Over (RTO). Neo Energy’s initial focus is on the Henkries Uranium Project in the Northern Cape Province of South Africa.

Henkries boasts an estimated mineral resource of 4.7 million pounds of uranium, but the project is wide open for potential new uranium discoveries given less than 10% of prospective ground has been fully tested. With about USD30-million worth of historical exploration, drilling, test-pitting and mining, metallurgical testwork, pilot plant work and feasibility studies by Anglo American in the 1970s Neo Metals hopes to build out its energy metal portfolio in the highly prospective Northern Cape Region of South Africa as well as globally.

As part of a Reverse Take-Over (‘RTO’) process, the Company raised £4.9 million gross of fees and costs through a Subscription for Shares and a Placing of Shares at 1.25 pence per Ordinary Share.  The Enlarged Share Capital following Admission will be 1,216,371,468 ordinary shares giving the Company a market capitalisation of c.£15m.

Development decision within two years (South African focussed uranium explorer’s listing a first for LSE)

According to Neo Energy CEO Sean Heathcote the company will fast track the low-cost, near-term Henkries Uranium Project towards a development decision within two years.

“In line with this, our next steps include increasing the project’s Mineral Resources, which is highly probable as less than 10% of prospective ground is fully tested, and updating the initial, positive feasibility study,” says Heathcote.

“We have joined the market at an opportune time.  As the cleanest, cheapest, and safest form of mass power generation, interest in uranium is building momentum.  With close to 10% of the world’s power generation coming from nuclear, rising to almost 20% in advanced economies, current inventories are being depleted and no new deposits are being put into production. More uranium must be mined to feed existing and new nuclear power plants, particularly in Asia where 60% of the new global reactors are under construction. The upside for uranium companies such as Neo Energy is therefore clear,” says Heathcote.

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Potential regional expansion (South African focussed uranium explorer’s listing a first for LSE)

Neo Energy holds 70% interest in the 742km2 Henkries Uranium Project with an estimated mineral resource of 4.7 million pounds of uranium which has been subject to extensive historical exploration activities as well as a feasibility study.

The other 30% interest is owned by Wavecrest Proprietary Capital Limited, a company registered in South Africa, and which holds its interest in accordance with South Africa’s Broad Based Black Economic Empowerment legislation.

Neo Energy’s strategy is layered on a two-year development approach to generate cashflow from Henkries with a view towards building a longer term (8-year) exploration and portfolio growth strategy to develop the highly prospective Northern Cape Region of South Africa and, potentially, broader regional expansion into energy metal property holdings globally.

The company plans to explore additional minerals of significant intrinsic value to the global de-carbonisation drive such as lithium, graphite, copper, lead, and zinc, should they occur on properties under investigation.

The Competent Persons Report (CPR) highlights that Henkries’ basement gneisses are mostly of the Aggeneys Subgroup, and the Marula Mining Blesberg Spodumene (lithium) deposit is less than 30km from Henkries, suggesting the potential for further discoveries of this nature in the region.

In addition, data obtained in May 2022 from detailed historical airborne surveys identified what could be a significant base metal anomaly within the Henkries property. Any discoveries worthy of investigation have the potential to be spun out with the proceeds being used to further fund the Company’s uranium growth strategy.

South African focussed uranium explorer’s listing a first for LSE

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South African focussed uranium explorer’s listing a first for LSE   

 

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