GoviEx Uranium has closed its announced acquisition of African Energy Resources’ uranium mineral interests in Zambia.
The acquired assets include the Chirundu and Kariba Valley properties.
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By GlobalDataAfrican Energy already secured mining and prospecting licences for the properties, while an exploration licence is pending.
The Chirundu mining licence comprises two uranium deposits, Gwabe and Njame, with Joint Ore Reserves Committee (JORC) mineral resources of 7.4Mlb U3O8 in the measured and indicated categories, as well as 3.8Mlb U3O8 in the inferred category.
GoviEx Uranium executive chairman Govind Friedland said: “The combination of African Energy’s Chirundu and Kiraba Valley tenements with GoviEx’s Mutanga project finally unites these neighbouring properties, and significantly expands and improves the potential economies of scale.
“GoviEx will now focus on completing a preliminary economic assessment based on the consolidated landholding.”
Under the acquisition, GoviEx acquired African Energy’s wholly owned Zambian subsidiaries, Muchinga Energy Resources, which owns the Kariba Valley tenement, and Chirundu Joint Ventures Zambia, which holds the Chirundu tenements.
Towards the transaction, the company offered three million common shares and warrants to purchase 1.6 million common shares to African Energy.
The acquisition, along with the Mutanga project, will result in contiguous tenements of around 140km in strike length.
In addition, the combination will allow the company to have three mining licences, containing combined mineral resources of 15.2Mlb U3O8 in the measured and indicated categories and 45.2Mlb U3O8 in the inferred category.
Moreover, the deal represents the company’s strategy to achieve regional consolidation.
The company noted that there are prospective drill targets within the acquired assets.
The acquisition is conditional on the receipt of final approval from the TSX Venture Exchange.