The South African Reserve Bank (SARB) has granted key approvals needed for Neo Energy Metals subsidiary Neo Uranium Resources South Africa (Nursa) to acquire the Beisa uranium project from multinational mining and metals processing group Sibanye-Stillwater.

London-listed Neo Energy says the SARB has approved a foreign intercompany shareholder loan facility of R1.2-billion for working capital purposes between Neo Energy and Nursa.

This loan structure enables efficient inflow of funds into South Africa subject to compliance with the SARB reporting and exchange control requirements.

Sibanye-Stillwater has also confirmed receipt of SARB approval to hold shares in Neo Energy as part of the proposed transaction structure.

As announced on December 9, 2024, upon settlement of the acquisition of the 100% interest in the Beisa uranium project, which is expected to occur in the second half of this year, Neo Energy will pay Sibanye-Stillwater a cash fee of R250-million and issue loan notes valued at R250-million under a loan note instrument.

Following completion, Sibanye-Stillwater will hold about 40% in Neo Energy, becoming its largest shareholder.

The Beisa uranium project includes the 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, and which hosts South African Mineral Resource Committee- (Samrec-) compliant measured and indicated resources of 1.2-million ounces of gold and 26.9-million pounds of uranium.

The company and key stakeholders continue to work together in seeking all the necessary regulatory approvals and transfers of permits and authorisations in South Africa and anticipates that these will be finalised in the second half of the year.

"On behalf of the board, we are pleased to have secured the necessary approvals by the SARB marking a significant milestone in the completion of the Beisa uranium project transaction and further enabling Neo to advance its development plans,” say Neo Energy Metals chairperson Jason Brewer.

He says the company remains committed to meeting all necessary regulatory approvals in South Africa and anticipates continuing to advance these milestones to completion.

“These approvals unlock the financial structuring necessary to deliver long-term value from this world-class asset,” says Brewer.