Noronex Ltd In Transformative Uranium Deal Near Bannerman Energy’s Etango Project

Shares in Noronex Ltd (ASX: NRX) could fly after it announced it would add uranium to its projects in Namibia, in a highly strategic location.

The surging uranium price and proximity to a major deposit in a pro uranium jurisdiction is a significant attraction.

It has its hands on a uranium interest near Bannerman Energy’s (ASX: BMN) large undeveloped uranium Etango project.

The company has entered into an exclusivity agreement to acquire an 80% interest via earn-out on a 7,000-hectare claim located around 3 kilometres north of the Etango project.

In tandem, Noronex will undertake a capital raising of up to $0.9 million at 0.86c per share, representing a 14% discount to the closing price on 13 March 2024.

Not surprisingly, given the surging uranium price and premiums attached to the uranium sector, investors have already subscribed for $775,508 in a raising.

Due diligence will determine whether it will acquire up to an 80% interest via earn-out on a highly prospective 7,000-hectare claim

Key terms

  • An $81,000 cash payment for a 120-day exclusivity period,
  • Stage one earn-in is $61,000 in cash and the same value in shares,
  • Stage two earn-in is $162,000 in cash the same value in shares.

Geology

The geology on the claim includes mineralisation associated with Alaskites (pegmatites) which is the host rock for major uranium projects in Namibia like Rossing.

It is similar to the Etango-style hard rock mineralisation.

Alaskite mineralisation has been identified in historical trenches within a few hundred metres of the claim boundary.

Next steps

The next steps are due diligence, completion of an environmental clearance certificate followed by on-ground soils/radiometric testing, and planning for a potential drill program.

Etango ranks as one of the world’s largest and most advanced uranium development assets hosting 225 million pounds.

Namibia is a leading jurisdiction for uranium mining being the third largest producer in 2022 and hosts the fifth largest resources in the world.

The country contains significant uranium mines with advanced development projects such as Rossing, Husab, Trekopje, Tumas (Deep Yellow ASX: DYL) and Langer Heinrich (Paladin ASX: PDN).

Namibia has a history of 45 years of uranium production and export and is recognised as a tier-one supplier to global utilities.

The deal places Noronex in an entirely new sphere of valuation should the project pass due diligence.

 

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