Uranium developer Neo Energy Metals has entered into a strategic funding agreement with a UK-based investment group, which will provide Neo Energy with £8-million in support of its ongoing work to advance the Beisa uranium and gold project, in South Africa.

The investment group has already advanced £1.5-million to the company following a placement of 166-million new ordinary Neo shares at a price of £0.09 apiece.

Neo Energy has also completed the placing of a further 111-million ordinary shares at the same issue price to raise a further £1-million.

Once Neo Energy receives all necessary regulatory approvals in South Africa – to acquire the Beatrix 4 Shaft mine and Beisa project from metals miner Sibanye-Stillwater – the UK-based investment group has the right to invest a further £6.5-million of convertible loan funding within ten days.

The strategic investor will be able to nominate one nonexecutive director to Neo Energy’s board, as well as one board observer, subject to board approval and the investor maintaining a shareholding in the company of at least 5%.

Neo Energy expects all approvals for the acquisition to be in place before the end of March.

Meanwhile, Neo Energy will use the funds raised to advance a four-phase implementation assessment programme that is currently under way.

The Beatrix Shaft 4, which has measured and indicated resources of 1.2-million ounces of gold and 27-million pounds of uranium, was in production for more than 30 years since the early 1980s, but was placed in care and maintenance late in 2023.

The first two phases of Neo Energy’s work under the implementation assessment programme includes site re-establishment, shaft refurbishment, workforce recruitment and shaft equipment upgrade assessments. It will also involve underground development work reviews, gold plant recommissioning and uranium circuit design finalisation work.

Neo Energy assures it continues to work with strategic advisers and brokers to ensure the company has the necessary debt, structured finance and equity funding in place to complete the acquisition of Beisa once all outstanding regulatory and shareholder approvals are finalised.

Neo Energy CEO Theo Botoulas says the financing progress underscores the growing confidence in the company’s strategy and commodity portfolio.

“The investment agreement with the strategic investor, together with the continued backing of our advisers and brokers in the UK and South Africa, provides a strong platform to accelerate development at our uranium and gold projects,” he adds.

With market conditions for Neo Energy’s targeted metals remaining robust, the financing initiatives further strengthen the company’s financial footing.  

“Neo Energy is well positioned to capitalise on favourable market dynamics and move confidently into its next phase of growth,” Botoulas concludes.