Australian company Marenica Energy has signed an agreement to provide its U-pgrade technology for developing Deep Yellow’s Tumas Project in Namibia.
The project is located in the Erongo region close to three major uranium processing plants.
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Deep Yellow will use the technology in return for a long-term licence fee, which is equal to around 25% of the project’s net present value (NPV).
The companies believe that the agreement has the potential to lower the uranium price obstacle for Tumas.
Marenica Energy managing director Murray Hill said: “We have long identified Deep Yellow’s Tumas project as a good fit for our first commercialisation agreement, based on the project’s high-suitability for our technology, the project’s relatively advanced stage of development and the excellent cultural fit between the two companies.
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“Importantly, the project is located in Namibia, a jurisdiction that is highly supportive of the uranium mining industry and with operating uranium mines in close proximity that could take the U-pgrade concentrate.”
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By GlobalDataUnder the agreement, Deep Yellow will receive a licence to use U-pgrade for all its existing projects in Namibia. In return, Marenica will receive a licence fee for uranium sold by the project during the complete life of the U-pgrade plant.
Deep Yellow will be responsible for funding all project development expenditure including the total cost of a pilot plant.
In addition, the company will pay fees to Marenica during the feasibility study and development phase.
Recently, Deep Yellow completed a metallurgical testwork programme at Tumas using the Marenica U-pgrade technology. Tests revealed that the ore is capable of producing a concentrate containing around 3% of the mined mass.
