GoviEx to sells Falea uranium project in Mali

GoviEx Uranium has announced plans to sell its uranium-silver-copper Falea project in Mali. The firm has entered into a deal with African Energy Metals Inc. whereby AEM will acquire all of the issued and outstanding shares of GoviEx’s wholly-owned Malian subsidiary, Delta Exploration Mali SARL (“Delta”). Delta holds three contiguous exploration licences (Falea, Bala, and Madini) in Mali known collectively as the Falea project.

The Falea project is located about 350 km west of Mali’s capital Bamako and roughly 240 km south of the city of Kayes. It is also about 80 km to the east of Areva’s Saraya East uranium deposit in Senegal and approximately 13 km along trend from Iamgold’s (TSX: IMG; NYSE: IAG) Siribaya gold deposit.

Falea project

The sale of the Falea project is part of GoviEx’s strategy of focusing on its two advanced mine-permitted projects, Madaouela in Niger and Muntanga in Zambia. Whilst the Falea project will be managed by AEM, GoviEx will retain a considerable interest in the project, therefore maintaining a potential upside on any future discoveries.

Under the terms of the agreement, AEM will acquire all of the outstanding shares of Delta for a purchase price of $5,500,000 that shall be satisfied as follows: (i) at closing of the transaction, a cash payment of $500,000 and the issuance of AEM’s common shares equal to a value of $2,000,000; and (ii) subject to the re-issuance of the Falea license, the issuance of AEM’s common shares equal to a value $3,000,000. AEM will also grant GoviEx a 3% net smelter royalty on the Falea project.

“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, silver and gold.”,” Stephen Bartley, African Energy’s executive chairman, said in a press release.

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