Neo Energy Metals, through its South African subsidiary Neo Uranium Resources Beisa Mine (NURB), has entered a binding deal to acquire a 100% interest in the Beisa North and Beisa South uranium and gold projects.

These projects, located in the Witwatersrand basin and previously owned by Sunshine Mineral Reserve, hold 90.24mlb of triuranium octoxide (U3O8) and 4.17moz of gold.

The acquisition aligns with the company’s strategy to become a leading uranium mining entity in South Africa and a significant operator in Africa.

The Beisa Projects represent the initial step in Neo’s broader plan to consolidate its position in a globally important uranium resource region.

Historical exploration, dating back to 1936, has established the presence of the uranium-bearing Beisa Reef, with the Beisa North Uranium Project showing potential as a stand-alone mining operation.

The Beisa Reef’s shallow depth and steep configuration are favourable for the typical narrow underground mining methods used in the Witwatersrand Basin, potentially reducing ore dilution.

The Beisa North Uranium Project has 31.36 million tonnes of ore with 57.23 million pounds of U3O8 and a gold by-product, highlighting its stand-alone mining potential.

Under the terms of the acquisition, Neo will pay Sunshine an exclusivity fee of R2.5m ($137,632) and issue 20 million new ordinary shares at R0.75 each.

Upon finalising the acquisition, a further cash fee of R175m and new shares valued at R200m will be issued, ensuring Sunshine’s shareholding in Neo does not surpass 29.9%.

Neo Energy Metals CEO Sean Heathcote said: “This acquisition marks a major milestone for Neo Energy Metals, and significantly expands our footprint in one of the richest and long-standing uranium producing regions in the world.

“The Beisa North and Beisa South Uranium Projects not only bolster our uranium resource base but also further strengthens the company’s ability to achieve its strategic goal of becoming a major player in global uranium market and as South Africa’s leading uranium company.

“Together the Beisa North and Beisa South Uranium Projects add an additional 90mlb of uranium resources and a further 4.17moz of gold resources – the project has a potential combined in situ value of over $17bn, equivalent to over 210mlb of uranium, based on current uranium and gold prices.”