Uranium developer Neo Energy, through its 70% majority owned South African subsidiary Neo Uranium Resources Beisa Mine (NURB), has signed a further ancillary acquisition agreement with Sibanye-Stillwater subsidiary Sibanye Gold Limited (SGL) for its acquisition of the Beatrix 4 mine and shaft complex, the processing plant complex and associated infrastructure located in the Witwatersrand basin, in the Free State.

A sale of immovable property agreement has been signed by both NURB and SGL, under which NURB has agreed to acquire the land upon which the Beisa uranium project and associated mining right extends over.

This land covers the majority of the about 6 244 ha that makes up the Beisa uranium project mining right area and includes the remaining extent of Portion 1 of the Farm Kalkoenkrans 225 Theunissen RD; Portion 9 of the Farm Annex Glen Ross 562, Theunissen RD; Portion 4 of the Farm Kalkoenkrans 225 Theunissen RD; the remaining extent of the Farm Palmietkuil 328 Theunissen RD; the remaining extent of Portion 1 of the Farm Palmietkuil 328 Theunissen RD; and Portion 6 of the Farm Palmietkuil 328 Theunissen RD.

The price payable for the 6 244 ha, bought under the property agreement, is already included in the acquisition cost of the Beisa uranium project and no additional payments are required to be paid to Sibanye-Stillwater by the company.

The signing of the property agreement has satisfied a further key condition under the acquisition agreement with SGL.

COMPLIANCE

Meanwhile, NURB has also satisfied a number of key conditions for the broad-based black economic empowerment (BBBEE) agreement that it has signed with South African mining company Siyakhula Sonke Empowerment Corporation (SSC).

In accordance with the BBBEE agreement, and as announced on January 29, the company has now completed the transfer of 30% of its shareholding in NURB, for a total see-through purchase price of R390-million (about £17-million).

Newly established South African company Siyakhula Sonke Resource Development (SSRD) is the legal entity that now holds the 30% shareholding in NURB, with the SSC group’s subsidiary SSC Eagle Mining, holding 66.66% of the BEE shares and the Siyakhula Community Development Trust and Siyakhula Employee Trust each holding 16.67% of the BEE shares.

Neo Energy holds the remaining 70% majority interest in NURB.

All documentation, including the inter-company loan agreement between NURB and SSRD in respect of the purchase price, the shareholders agreement between the BBBEE parties, the establishment and incorporation documents as well as certification of the BBBEE parties, has all now been prepared, completed and executed.

Completion of the BBBEE transaction with SSRD has further satisfied a key condition under the acquisition agreement with SGL.

Neo Energy says it is pleased with the progress that it is continuing to make with its advisers and South Africa-based lawyers in finalising the other key outstanding conditions and regulatory approvals in respect to the Beisa uranium project acquisition with Sibanye-Stillwater.