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Elevate Uranium buys more of Namibia’s Marenica project to boost control
The acquisition increases Elevate’s stake in Marenica to 90% ahead of an end-July deal close, while the buy also supports its U-pgrade pilot work aimed at lowering future mine costs.
Elevate Uranium will buy an additional 15% of the Marenica uranium project in Namibia, taking its ownership to 90% as it tightens control over the asset and tests processing technology it says could reduce future mine costs, Mining.com reports.
Marenica is located in central Erongo, about 200 km west of Windhoek, and contains 134.5 million tonnes grading 180 ppm uranium oxide for 52.8 million lb., which would leave Elevate with 47.5 million attributable lb. after the transaction closes.
The deal will lift Elevate’s Namibian resource base to 124 million lb. and its global total to 181 million pounds. The company said Marenica’s recent JORC resource update essentially doubled grade and increased in size by 31% to 52.8 million lb. U3O8.
Elevate expects to complete the acquisition by the end of July, paying Millenium and Xanthos for the additional interests through a mix of A$1.1 million in cash to Xanthos, A$2.2 million in new Elevate shares split between the sellers, and the cancellation of A$3.4 million in debt owed by Millenium. Mining.com also noted Elevate’s shares were down 6% to A23¢ in Tuesday trading, valuing the company at A$107 million.