Neo Energy Metals PLC on Friday said it has completed the required due diligence for its acquisition of the Beisa projects.
The South Africa-focused low-cost uranium developer announced on Tuesday it had signed a binding agreement with Sunshine Mineral Reserve (Pty) Ltd to acquire a 100% interest in the Beisa uranium and gold projects, encompassing an area of 80 square kilometres.
Neo Energy Metals agreed to pay an initial exclusivity fee of £107,500 and issue 20.0 million new shares at an issue price of 0.75 pence each.
Neo Energy Metals shares were down 6.4% to 0.84p in London on Friday afternoon.
Upon settlement of the acquisition, Neo Energy Metals will pay a cash fee of £7.5 million and issue new shares to the value of £8.5 million at an issue price of 1.25 pence each.
The agreement was subject to completion of technical, financial, and legal due diligence by Neo Energy Metals no later than August 31 2024. This process has now completed ahead of schedule.
‘The due diligence work undertaken by the company has confirmed the significance of the high-grade uranium resource and associated gold resource, which is located in South Africa’s primary uranium producing region and one of the world’s most established and largest gold-producing regions,’ Neo Energy Metals said.
Neo Energy Metals also conducted a review and evaluation of historical resources reports and supporting data as well as the legal and environmental considerations.
Alongside its lawyers and other South African advisors, Neo Energy Metals is now working towards finalising the formal acquisition documentation, leaving the company on track to sign such documents with Sunshine no later than September 30, it said.
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