African graphite explorer and developer NGX has entered into binding earn-in joint venture (JV) agreements for two exclusive prospecting licence (EPL) applications in Namibia.
Both EPLs lie in the Erongo region of Namibia in one of the world’s best-known uranium districts established with several operating mines nearby.
Under the binding agreement for the Rossingburg licence with Hahndorf Investments, NGX will pay US$20,000 for an exclusivity period, and an additional US$20,000 on receipt of the intent to grant the licence from the Mines Ministry.
NGX, which has a market capitalisation of $14 million, will fund any activities to secure an environmental clearance certificate and provide further financial capacity support for the licence application.
As part of the second stage, NGX will pay US$150,000 to Hahndorf to earn a 25% interest in the JV.
Within a three-year period, the company will pay US$150,000 each year, totalling US$450,000, to earn an 85% interest in the EPL.
Meanwhile, under the agreement for the Tubusis licence, between Magdalena Appolus, NGX will pay a US$15,000 exclusivity period and once the licence is granted will pay an additional $50,000 to earn a 25% interest in the JV.
Within 18 months of stage two, the company will pay US$150,000 to earn a 51% interest. NGX will pay an additional US$200,000 within 18 months of stage three to earn a total 85% interest.
The vendor will be free-carried to a final investment decision, retaining at least a 15% interest.
Executive Director Matt Syme says while the company is progressing permitting and processing testwork on its flagship asset in Malawi, NGX is also looking for opportunities to expand its clean energy minerals portfolio in Africa.
“Our management group includes considerable and very successful experience in uranium exploration, so this is a natural addition to our portfolio,” he says.
“We are very optimistic about the outlook for the uranium market and Namibia remains the premier uranium exploration environment in Africa.”
Rossingburg, which covers 47km2, lies in the main uranium production hub of the central Damara uranium belt, between the Rossing uranium mine and Etango uranium project. Previous exploration shows the area has widespread uranium mineralisation that had been intercepted in drilling.
Tubusis, which covers 113km2, lies in an underexplored region of the Damara belt, sitting to the northeast of Swakopmund. The licence area was the subject of limited historical exploration by previous permit holders.
Upon entering into the binding earn-in JV agreements for exclusive prospecting licence applications in Namibia, NGX says the African graphite explorer and developer’s geologists have inspected both licence application areas which shows evidence of historical exploration and outcropping alaskite leucogranites units, prospective to host uranium mineralisation.