Sibanye-Stillwater sells Beatrix 4 and Beisa project but retains uranium exposure
Sibanye-Stillwater has agreed to sell its mothballed Beatrix No 4 shaft, including the Beisa uranium project, to LSE- and A2X-listed Neo Energy Metals for a total of R500m in cash and shares, the two companies said on Monday.The deal will make Sibanye-Stillwater the biggest single shareholder in Neo Energy, with a 40% stake. The structure of the deal enables Sibanye to retain exposure to uranium price upside as Neo Energy develops Beisa, without putting strain on Sibanye’s balance sheetSibanye-Stillwater will receive R250m in cash and R250m in shares in Neo Energy, and will also earn a royalty on all uranium sold from the Beisa uranium project at rates dependent on the uranium spot price, to a maximum of $5/pound.The Beisa uranium project can be accessed through the Beatrix 4 shaft infrastructure. Beatrix 4, which is located in SA’s Free State province, was put on care and maintenance last year due to declining gold reserves and a depressed uranium price. Beatrix 4’s SAMREC-compliant measured and indicated resources are 1.2Moz of gold and 26.9Mlbs of uranium.Spot uranium prices peaked at over $100/lb in January 2024 from around $24/lb in January 2020 and were about $77/lb at end-November, according to uranium producer Cameco.For Neo Energy, the deal enables it to consolidate the Beatrix 4 Beisa resource with two adjacent uranium projects, Beisa North and South, which it acquired earlier this year from Sunshine Mineral Reserve. Combining all the resources across the Beisa reef gives Neo Energy over 117Mlbs of uranium and 5.4Moz of gold resources.Neo Energy’s goal is to pursue low-cost, near-term uranium production and establish itself as SA’s leading uranium producer. Chairman Jason Brewer said its next step would be to review previous development studies on the Beisa project, including updating operating and capital costs.Neo Energy expects to release an updated development plan for Beisa in the second half of 2025, targeting an annual 1-3Mlbs of uranium and up to 100,000oz of gold over a 20-year life. The company is in discussions to raise debt and commodity-based funding for the project.The post Sibanye-Stillwater sells Beatrix 4 and Beisa project but retains uranium exposure appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com