London- and South Africa-listed Neo Energy Metals has completed its technical, financial and legal due diligence on the proposed acquisition of a 100% interest in the multimillion-pound uranium and multimillion-ounce gold resources of the Beisa North and Beisa South projects in South Africa.

The company, which has a secondary listing on the A2X Markets exchange in South Africa, announced on August 13 that it had signed a binding agreement with Sunshine Mineral Reserve to acquire the Beisa projects.

The acquisition of the projects was subject to the completion of a due diligence by the company by no later than August 31.

“The completion of this due diligence, ahead of schedule, marks a significant milestone in the advancement of the Beisa projects and the company's strategy to become South Africa's leading uranium mining company and a major player in Africa's uranium sector,” the company says in an August 16 update to shareholders.

The Beisa projects comprise total South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves-compliant resources of 90.24-million pounds of triuranium octoxide (U₃0₈) and 4.17-million ounces of gold and are located on two granted prospecting rights, extending over an area of about 80 km² in the Witwatersrand basin, in the Free State.

The technical due diligence included a review and assessment of the potential standalone underground operation at Beisa North, which has total resources of 31.36-million tonnes of ore and 57.23-million pounds of U₃0₈ at an average grade of 830 ppm and 2.05-million ounces of gold at an average grade of 2.03 g/t.

The review also highlighted the potential upside that exists at Beisa South, as well as the need for further work to be undertaken on the existing resources of 33.1-million pounds of U₃0₈ and 2.12-million ounces of gold.

The company, its advisers and South African lawyers are now finalising the legal documentation for the acquisition. The company anticipates the signing to be completed by no later than September 30.

The company explains that the due diligence process involved a thorough review and evaluation of historical resources reports and supporting data as well as the legal and environmental considerations of the Beisa projects and the granted prospecting rights in place.

Executive members of the company's management team and its representatives in South Africa have also undertaken site visits to the region and were able to visit some of the adjoining areas with existing mining and processing infrastructure.

The company says due diligence work has confirmed the significance of the high-grade uranium resource and associated gold resource located in South Africa's primary uranium-producing region and one of the world's most established and largest gold-producing regions.