GoviEx Uranium has agreed to divest its Falea polymetallic copper-silver-uranium project in Mali to African Energy Metals (AEM) in a C$5.5m cash-stock deal.

Under the agreed terms, AEM will acquire all issued and outstanding shares of GoviEx’s wholly owned Malian subsidiary Delta Exploration Mali SARL.

Delta Exploration owns three contiguous exploration licences, namely Falea; Bala; and Madini, which are collectively known as the Falea project.

The deal consideration includes a $500,000 cash payment and the issuance of AEM common shares equal to a value of $2m.

Subject to the re-issue of the licence for the Falea project, AEM will also issue $3m worth of common shares to GoviEx.

Furthermore, GoviEx will be granted a 3% net smelter royalty on the Falea project.

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The sale forms part of GoviEx’s plan to focus on its two advanced mine-permitted projects, specifically Madaouela in Niger, and Muntanga in Zambia.

GoviEx CEO Daniel Major said: “This is a strategic deal which will allow GoviEx shareholders to maintain a significant interest in the Falea project whilst allowing the company to concentrate its efforts on the continued exploration and development of its two mine-permitted, advanced-stage development uranium projects, Madaouela and Muntanga.

“Falea is a solid project with fantastic exploration potential and African Energy Metals is well placed to manage its development going forward, with in-country knowledge and experience.”

Subject to conditions, including, but not limited to approval of Canada’s TSX Venture Exchange, the transaction is planned to complete on or before 15 March 2023.

African Energy Metals executive chairman Stephen Barley said: “It is a polymetallic project with a significant uranium resource. GoviEx will become an important shareholder of African Energy Metals and our shareholders will have the continuing benefit of their knowledge and mining expertise.

“Less than 5% of the property has been explored, so there is substantial exploration upside for uranium, copper, gold, and silver.”