Neo Energy Metals Expands Uranium and Gold Portfolio with Beisa Mine Acquisition
Neo Uranium Resources Beisa Mine (NURB), a subsidiary of South Africa- and London-listed Neo Energy Metals (NEO), has signed a binding agreement to acquire the Beisa North and Beisa South uranium and gold projects in the Witwatersrand Basin, Gauteng, from Sunshine Mineral Reserve.
The Beisa North and South projects contain resources of 90.24 million pounds of triuranium octoxide (U3O8) and 4.17 million ounces of gold.
These projects are located immediately north and south of the former high-grade Beisa uranium mine and are adjacent to the existing multimillion-ounce gold mining operations of Harmony Gold Mining Company and Sibanye-Stillwater.
NEO, which also owns the Henkries uranium project in South Africa’s Northern Cape province, states that this acquisition aligns with its strategy to establish itself as a leading uranium mining company in South Africa and Africa. This is the first of several potential acquisitions the company is pursuing.
“This acquisition marks a major milestone for Neo Energy Metals and significantly expands our footprint in one of the richest and most established uranium-producing regions in the world,” said NEO CEO Sean Heathcote.
“The projects not only bolster our uranium resource base but also strengthen our ability to achieve our strategic goal of becoming a major player in the global uranium market and South Africa’s leading uranium company.”
Heathcote expressed excitement about the potential of these projects and outlined plans to advance them toward production by leveraging the existing infrastructure surrounding the sites and the expertise of NEO’s team.
He noted that formal documentation and regulatory approvals for the acquisition are expected to be finalized soon, along with debt funding arrangements.
The Beisa projects have undergone extensive exploration since 1936, with multiple diamond drilling resource programs completed by various South African mining companies.
The uranium-bearing Beisa Reef, present in both project areas, is considered the shallowest deposit in the Welkom Goldfield within the Witwatersrand Basin. At the Beisa North project, the Beisa Reef lies as shallow as 350 meters north of the former Beisa uranium mine.
The shallow depth and steep configuration of the Beisa Reef are favorable for the narrow underground mining methods typical of the Witwatersrand Basin, which are also expected to reduce dilution of the uranium-gold ore.
NEO indicates that the Beisa North project could operate as a standalone mining operation or be developed using existing nearby mine, shaft, and underground infrastructure. In-fill drilling is planned at the Beisa South project to increase resource confidence across the 56 km² project area.
Transaction Details
As part of the initial agreement with Sunshine Mineral Reserve, NEO has agreed to pay a R2.5-million exclusivity fee and issue 20 million new NEO shares to Sunshine. The formal acquisition documentation is expected to be finalized by September 30.
To complete the acquisition, NEO will pay Sunshine R175 million in cash and issue new ordinary shares worth R200 million, provided that Sunshine’s shareholding in NEO does not exceed 29.9%.
Additionally, NEO will grant Sunshine a royalty on uranium produced at the Beisa projects, ranging from $3/lb to $5/lb, depending on the uranium spot price, and a gold royalty of $7.50/oz.
The acquisition is backed by NEO’s major shareholder, Dubai-based AUO Commercial Brokerage. NEO is also negotiating a non-dilutive debt facility with AUO and other parties to further fund its working capital, accelerate the development of the Henkries project, and support its growth strategy in South Africa.
In addition to its listing on the main market of the London Stock Exchange, NEO is also listed on South Africa’s A2X exchange.
