Neo Energy Metals advances Beisa with £8m funding

Uranium developer Neo Energy Metals has entered into a strategic funding agreement with a UK-based investment group that will provide up to £8 million to support the advancement of the Beisa uranium and gold project in South Africa.

The funding is aimed at accelerating development activities as the company progresses toward acquiring the Beatrix 4 Shaft mine and the Beisa project from Sibanye-Stillwater.

The investment group has already advanced £1.5 million to Neo Energy following the placement of 166 million new ordinary shares at an issue price of £0.09 per share. In addition, the company has completed a further placing of 111 million ordinary shares at the same price, raising an additional £1 million.

Subject to receiving all required regulatory approvals in South Africa for the acquisition, the UK-based investor will have the right to provide a further £6.5 million in convertible loan funding within ten days of approval. Neo Energy expects these approvals to be finalised before the end of March.

As part of the agreement, the strategic investor will be entitled to nominate one nonexecutive director to Neo Energy’s board, as well as one board observer, subject to board approval and the maintenance of a minimum 5% shareholding in the company.

The funds raised will be used to advance Neo Energy’s four-phase implementation assessment programme, which is already under way. Beatrix Shaft 4 hosts measured and indicated resources of approximately 1.2 million ounces of gold and 27 million pounds of uranium.

The shaft was in production for more than 30 years from the early 1980s before being placed into care and maintenance in late 2023.

The first two phases of the assessment programme focus on site re-establishment, shaft refurbishment, workforce recruitment and evaluations of shaft equipment upgrades. The work programme also includes reviews of underground development, gold plant recommissioning and finalisation of the uranium circuit design.

Neo Energy has confirmed that it continues to work closely with strategic advisers and brokers to ensure the necessary mix of debt, structured finance and equity funding is in place to complete the acquisition once all outstanding regulatory and shareholder approvals have been secured.

Commenting on the progress, Neo Energy CEO Theo Botoulas says the latest financing developments reflect growing confidence in the company’s strategy and commodity portfolio.

“The investment agreement with the strategic investor, together with the continued backing of our advisers and brokers in the UK and South Africa, provides a strong platform to accelerate development at our uranium and gold projects,” he says.

With market conditions for uranium and gold remaining favourable, the financing initiatives further strengthen Neo Energy’s financial position.

“Neo Energy is well positioned to capitalise on favourable market dynamics and move confidently into its next phase of growth,” Botoulas concludes.