Deep Yellow has partnered with Core Energy Minerals to advance uranium exploration in Namibia, marking a significant shift in their joint venture dynamics.
Core Energy will invest approximately N.5 million (A million) in the Nova uranium project, gaining a pathway to a controlling 51% interest. This follows the exit of the former Japanese partner JOGMEC, which previously held a 39.5% stake after investing A.5 million.
Core Energy Takes Control of Nova Joint Venture
Under the new agreement, Core Energy will manage the Nova Joint Venture and fund all exploration activities. The existing shareholders will not incur costs until Core Energy fulfills its financial commitments. This arrangement allows Deep Yellow to maintain its stake while minimizing immediate financial obligations.
Core Energy’s investment will enable it to earn an initial 25% interest by spending A million (about N million) within 18 months. If successful, Core Energy can further increase its stake by investing an additional A million (approximately N.5 million) within 24 months of completing the first phase.
Deep Yellow’s Strategic Focus on Uranium Projects
Deep Yellow is concentrating its efforts on the more advanced Tumas uranium project, which is moving towards a final investment decision. The company currently holds a 65% interest in the Nova project through its subsidiary, Reptile Mineral Resources and Exploration.
The Nova project covers about 600 square kilometres and is strategically located near the Langer Heinrich uranium mine. This partnership with Core Energy not only enhances exploration capabilities but also expands Core Energy’s footprint in Namibia, where it already operates other uranium projects.
Next Steps for Core Energy and Deep Yellow
- Core Energy to spend A million within 18 months to earn a 25% interest.
- Core Energy to invest an additional A million within 24 months to earn a further 26% interest.
- Deep Yellow to focus on advancing the Tumas uranium project.
Core Energy’s investment marks a pivotal moment for uranium exploration in Namibia.
