LSE-listed Neo Energy Metals, which is developing the Henkries uranium project, in the Northern Cape, will inward list its shares on A2X Markets – a South African stock exchange – to enlarge its shareholder base and provide South African investors with an opportunity to invest in a uranium-focused operator within the region.

Neo’s shares will be available for trade on A2X from February 27.

The company, led by CEO Sean Heathcote and chairperson Jason Brewer, describes itself as one of the most advanced, high-grade uranium companies capable of near-term production and the only company listed on the LSE main board providing investors with exclusive access to the uranium exploration sector.

Its 70%-owned Henkries project is Neo's flagship project, but the company intends to expand its portfolio of projects in South Africa, as well as in the rest of Africa.

"Neo’s secondary listing on A2X will help broaden its investor base and allow the issue of shares for acquisitions, particularly related to South African opportunities. We already have significant South African shareholders and a listing on A2X will facilitate easier investment and trading in our shares,” Heathcote says.

He explains that Neo chose the A2X for its inward listing owing to the exchange's strong record of secondary listings.

"As well as increasing the liquidity and traceability of our shares, we anticipate that a secondary listing on the A2X will drive increased awareness of our activities as we build out our uranium portfolio. Furthermore, it demonstrates our commitment to our local stakeholders and support for developing South Africa’s capital markets.

"Neo’s partnership with its cornerstone investor, Q Global Commodities, headed up by Quinton van der Burgh, has played a significant role in facilitating this decision. With a clear and defined growth path, supported by strong market dynamics, I am confident that Neo’s compelling investment proposition will attract significant interest from institutional investors in South Africa," he says.

“We are delighted to welcome Neo Energy Metals to our market next week and are pleased that A2X was chosen as the exchange to enable South African investors access to this opportunity.

"This marks an important milestone as the first offshore inward listing on A2X. We expect further inward listings which enable A2X to expand investment opportunities available to the South African marketplace,” comments A2X CEO Kevin Brady.

HENKRIES PROJECT
The project was discovered by diversified miner Anglo American in 1975 and it comprises two deposits – Henkries Central and Henkries North.

At Henkries Central, 80% of the uranium is in a continuous layer 3.6 km long, up to 1.1 km wide and up to 8 m thick, while uranium at Henkries North is found within six zones, the largest of which is 1 km long.

Neo says there is also major exploration upside at Henkries South, which extends for a further 24 km along the defined uranium paleochannel.

A January 2022 Joint Ore Reserves Committee-compliant estimate put the resource of the project at 4.7-million pounds of uranium oxide at 399 parts per million.