Sibanye Stillwater Ltd on Monday announced the sale of its Beatrix 4 shaft to Neo Energy Metals PLC, which celebrated the ‘landmark’ acquisition.
The Beatrix 4 mine and shaft complex includes the Beisa uranium project, in which London-headquartered Neo Energy will acquire a 100% interest through its subsidiary Neo Uranium Resources Beisa Mine (Pty) Ltd.
Roodepoort, Gauteng-based Sibanye noted that while uranium explorer Neo Energy will develop the Beisa project, the deal allows Sibanye to ‘retain exposure to future uranium production’.
The gold and platinum producer said consideration for Beatrix 4 totals R 500 million, or around £22.0 million, comprising R 250 million in cash and R 250 million in Neo Energy shares.
This leaves Sibanye Stillwater with an approximate 40% stake in Neo Energy, which Neo Energy said makes Sibanye its largest shareholder with the right to appoint board directors. Sibanye will also have rights of first refusal over any proposed new equity issuance by Neo Energy.
Sibanye said it will also receive royalties of up to $5 per pound on all uranium sold.
Sibanye placed the Beatrix 4 shaft on ’care and maintenance’ in 2023 ‘primarily due to declining gold reserves and a depressed uranium price’, but said the latter has recovered to peal at $106 per pound in January.
It said the deal ‘immediately crystalises value for Sibanye Stillwater shareholders and fast-tracks the possible development of the Beisa uranium project, without extending the group balance sheet’.
‘The sale of this strategic uranium asset is in line with Sibanye Stillwater’s strategy to unlock value from our uranium assets. The sale of Beatrix 4 shaft and the Beisa uranium project realises immediate value for the group,’ Sibanye’s Chief Executive Officer Neal Froneman said. ‘Through our direct shareholding in Neo Energy, we retain exposure to the uranium price and the future development of the project, while prioritising allocation of capital from the group balance sheet for projects currently under development.’
‘This transaction with Sibanye Stillwater is a landmark one for Neo Energy Metals and its shareholders,’ commented Neo Energy’s Chair Jason Brewer. ‘To have secured such a strategic asset, which consolidates our position in the Witwatersrand Basin, the heart of South Africa’s uranium industry, is a major accomplishment and I believe truly sets us apart from many other uranium development companies and further sets us firmly on the path to being one of the next uranium production companies in the world.’
Shares in Sibanye Stillwater were 4.1% higher at R 18.35 on Monday afternoon in Johannesburg.
Neo Energy Metals shares jumped 8.3% to trade at 1.30 pence on Monday afternoon in London.
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