C29 Ventures into Uranium Sector with Acquisition of High-Grade Project

In a significant move, C29 Metals Limited (ASX: C29) has made its foray into the uranium sector in Kazakhstan through a binding share sale and purchase agreement.

This agreement, with CA Metals Pty Ltd and Ulytau Resources Ltd, secures C29 a 100% beneficial interest in an exploration license situated in Kazakhstan known as the Ulytau Uranium Project.

To facilitate this acquisition, C29 has garnered firm commitments for a placement aimed at raising $3 million. The placement, structured in two tranches, is poised to bolster the company’s financial position.

The acquisition marks a transformative step for C29 as it gains complete ownership of the high-grade Jusandalinskoye (Ulytau) Uranium Project in Kazakhstan.

Notably, all requisite due diligence procedures have been meticulously undertaken.

The Ulytau Uranium Project boasts a Non-JORC foreign estimate indicating a substantial presence of uranium, standing at 9.85 million pounds at an impressive concentration of 2,790 parts per million (ppm).

Furthermore, the project has yielded promising results from drilling activities, with multiple intersections showcasing uranium concentrations exceeding 6,000ppm over intervals surpassing 40 meters, starting from a mere 3 meters below the surface.

An Independent Geology report underscores the project’s potential for future upgrades to its resource estimates, highlighting its open nature in various directions.

Uranium jurisdiction

Kazakhstan’s stature as the largest and most cost-efficient uranium producer globally further underscores the strategic significance of this acquisition. The nation currently accounts for approximately 43% of the global uranium supply.

In tandem with this acquisition, C29 welcomes Shannon Green, a seasoned mining executive, as its Managing Director. Green’s extensive experience is expected to be instrumental in steering the company’s endeavors within the uranium sector.

Project Overview and Strategic Location

Situated near Lake Balkhash in South Kazakhstan, the Ulytau Uranium Project occupies a strategic location, lying just 15 kilometers south of the Bota-Burum mine. The latter stands as one of the largest uranium deposits historically mined within the former Soviet Union.

Notably, the Bota-Burum mineralization field has been subject to geological surveying and prospecting activities since 1957, highlighting the region’s rich uranium potential.

New managing director Shannon Green

Reflecting on the company’s latest venture and his role within it, Shannon Green expressed enthusiasm. He underscored the rigorous due diligence process undertaken for the acquisition and emphasized the exceptional quality and potential of the Ulytau Uranium Project.

Green articulated his excitement about joining C29 and his eagerness to collaborate with the existing team in delivering long-term shareholder value.

He also expressed his intention to commence work on the project in the near future, underscoring his commitment to driving the company’s success in the uranium sector.

 

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