Uranium developer Neo Energy has signed the formal legal documentation for its acquisition of the Henkries South uranium project, which is located in the administrative district of Namaqualand, in the Northern Cape.

The agreement is comprised of a formal share sale and purchase agreement between Neo Energy and uranium exploration company Eagle Uranium.

Under the agreement, Neo Energy has now conditionally acquired a 100% shareholding in Henkries South, with the only outstanding conditions being the applicable regulatory approvals.

Henkries South comprises a single 1 050 km² granted prospecting licence that is immediately south of Neo Energy's existing Henkries uranium project.

The acquisition of Henkries South materially increases the company's strategic landholding in the region to almost 1 800 km² and adds a further 10 km strike length of shallow paleo-channels which have been demonstrated to host the shallow uranium mineralisation at the company's Henkries project.

In addition, previous exploration and assessment by the company's technical management team has shown that Henkries South contains multiple and extensive radioactive anomalies which are expected to add significantly to the resource potential at the now significantly expanded Henkries project.

Neo Energy will now proceed with the issue of 125-million shares to the Eagle Uranium shareholders and advisers, pay a cash consideration of R1.5-million and repay an additional amount of R1.7-million of Eagle Uranium's existing indebtedness and obligations, including licence fees.

A further 50-million shares are to be issued to Eagle Uranium and advisers, upon the transfer of the Henkries South mineral rights to the company's wholly-owned subsidiary Neo Uranium Resources South Africa.

"This marks a significant milestone in our growth strategy within South Africa's uranium sector, reinforcing our commitment and strengthening our presence in one of the country's most promising uranium regions.”

"We are eager to accelerate exploration and advance new mine development in this area. Henkries South presents exciting opportunities as we continue executing our vision of building a . . . uranium-focused company in Africa," Neo Energy CEO Sean Heathcote said.

An application has been made for the acquisition shares to be admitted to trading on the LSE on March 14 and will rank on par with Neo Energy’s ordinary shares.