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LONDON - Neo Energy Metals PLC (LSE:NEO), a uranium developer, has announced the receipt of final approvals from the South African Reserve Bank (SARB) for its acquisition of the Beisa Uranium Project, marking a significant regulatory milestone in the transaction. The approvals pave the way for a foreign intercompany shareholder loan facility of ZAR 1.2 billion (approximately £50.4 million) for working capital purposes between Neo Energy and its wholly owned subsidiary, Neo Uranium Resources South Africa (Pty) Ltd (NURSA).
The transaction, which includes the Beatrix 4 mine and shaft complex, the processing plant complex, and associated infrastructure in the Free State Province of South Africa, also involves Sibanye-Stillwater Limited as a key stakeholder. Upon completion, Sibanye-Stillwater is set to become the largest shareholder in Neo Energy with an approximate 40% stake.
The Beisa Uranium Project boasts measured and indicated resources compliant with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC), including 1.2 million ounces of gold and 26.9 million pounds of uranium.
The initial announcement of the acquisition was made on December 9, 2024, with the settlement expected to occur in the second half of 2025. The deal terms include a cash payment of ZAR 250 million (about £11 million) and the issuance of loan notes valued at the same amount under a loan note instrument.
Neo Energy and its stakeholders are actively working to secure all necessary regulatory approvals and transfers of permits and authorizations in South Africa, with finalization anticipated in the latter half of 2025.
Jason Brewer, Executive Chairman of Neo Energy Metals, expressed the company’s commitment to advancing the development plans for the Beisa Uranium Project and meeting all regulatory approvals in South Africa. He highlighted the SARB approvals as critical to unlocking the financial structuring needed to derive long-term value from the asset.
This development is part of Neo Energy’s strategy to accelerate development and production to generate cash flow while planning for long-term exploration and portfolio growth in the African uranium district. The company’s shares are also listed on the A2X Markets, an independent South African stock exchange.
The information in this article is based on a press release statement from Neo Energy Metals PLC.
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