Nova Joint Venture Namibia A$4.5m Earn-In By Jogmec
- Four year, A$4.5M earn-in by JOGMEC to earn a 39.5% interest in the Nova Joint Venture.
- The joint venture area is prospective for alaskite associated uranium targets (e.g. Rossing) and palaeochannel-related calcrete uranium targets (e.g. Langer Heinrich) and has only been minimally tested.
- JOGMEC is a Japanese Government organisation tasked with securing stable supplies of natural resources and energy for Japan.
The current parties in the NJV are Reptile Mineral Resources and Exploration (Pty) Ltd (RMR) (65% - wholly owned subsidiary of DYL and manager of the NJV), Nova Energy Africa (Pty) Ltd (Nova Africa) (25% - wholly owned subsidiary of ASX listed Toro Energy Ltd (ASX:TOE)-TOE) and Sixzone Investments (Pty) Ltd (Sixzone) (10% - local Namibian group).
JOGMEC, under the terms of the earn-in agreement, can earn a 39.5% interest in the project on expenditure of A$4.5M within four years. RMR, DYL's subsidiary, will continue to be manager. After earn-in has been achieved, the new equity distribution in the NJV will be JOGMEC 39.5%, RMR 39.5%, Nova Africa 15% and Sixzone 6%. JOGMEC will earn no equity unless it meets the full A$4.5M expenditure obligation. The remaining JV participants will be free carried until this expenditure commitment is satisfied and thereafter (except for Sixzone whose share will be carried and paid back from future dividends), the other parties will be required to contribute on a pro-rata basis.
JOGMEC is a Japanese government organisation that collaborates with governmental agencies and companies, both domestically and overseas, to secure stable supplies of natural resources and energy for Japan. JOGMEC carries out exploration activities through joint venture with overseas exploration companies. For projects that generate promising results, JOGMEC's position in the project may then be transferred to Japanese companies with reduced exploration risk. Projects are selected based on geological potential, quality of management, mining investment environment (including safety) and Japanese companies' interest. The organisation has entered into more than 100 projects in the past 12 years and currently has more than 25 active joint ventures, spanning grassroots exploration through to Pre-Feasibility level projects.
EPLs 3669 and 3670 are considered prospective for both alaskite type uranium targets (e.g. Rossing and Husab) and the surficial palaeochannel-related calcrete type uranium targets (e.g. Langer Heinrich). Several high priority alaskite targets have been identified previously on the tenements and remain essentially untested. Also, a north/south occurring palaeochannel has been delineated capturing the ground waters draining from the Erongo region containing highly uraniferous basement rocks. This is evidenced by the numerous uranium deposits and prospects that occur in that region. Search for both these target types will provide the focus of the exploration effort.
DYL intends to immediately initiate a program of geophysical and geological field work to delineate the uranium prospective zones in the NJV area. This will be followed by a drilling program later in the year.
Commenting on the JOGMEC earn-in, DYL Managing Director John Borshoff said:
"Since completing a strategic growth plan at the start of the year, Deep Yellow has been progressing opportunities to build shareholder value. The attraction of a partner of the calibre of JOGMEC is the first step in our strategy. This landmark agreement with our new Japanese partner heralds the start of an exciting period for Deep Yellow."
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About Deep Yellow Limited
Deep Yellow Limited (ASX:DYL) (OTCMKTS:DYLLF) is a specialist uranium company implementing a new strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company's uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a geographically diverse asset portfolio.
In parallel to its expansion objectives, the Company has a cornerstone suite of projects in Namibia, a top-ranked African mining destination with a long, well regarded history of safely and effectively developing and regulating its considerable uranium mining industry.
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