Core Energy Signs Nova Uranium Joint Venture Agreement, Securing 51% Stake for A$5 Million Investment

en.Wedoany.com Reported - On September 2, Core Energy Minerals signed a staged earn-in agreement for the Nova uranium joint venture project, securing up to a 51% interest in joint venture company Nova Energy (Namibia) by undertaking exploration expenditures totaling A$5 million. The agreement was signed jointly by Core Energy, Deep Yellow's wholly-owned subsidiary Reptile Mineral Resources and Exploration, Nova Energy (Africa), and Namibian company Sixzone Investments. Core Energy has not yet secured the 51% interest, which is contingent upon the completion of exploration expenditures across two subsequent stages.

The first stage requires Core Energy to invest A$2 million within 18 months of the earn-in arrangement commencing, upon completion of which it may acquire a 25% interest; it may then invest a further A$3 million within 24 months after the conclusion of the first stage to acquire an additional 26% interest, bringing its shareholding to 51%. During the earn-in period, Core Energy will assume the role of project manager from Reptile Mineral Resources and bear all exploration expenditures and operating costs, with existing shareholders not required to contribute proportionally until Core Energy completes its committed investment. Upon full completion of both stages, the shareholdings of Reptile Mineral Resources, Nova Energy (Africa), and Sixzone will be diluted to 31.85%, 12.25%, and 4.9%, respectively.

The Nova joint venture project holds two granted exploration licences, EPL3669 and EPL3670, covering the Tumas North and Chungochoab areas respectively, with a combined area of approximately 600 square kilometres, located to the west and southwest of the Langer Heinrich uranium mine. The joint venture is currently owned 65% by Reptile Mineral Resources, 25% by Nova Energy (Africa), and 10% by Sixzone.

The project has already defined uranium exploration targets including Barking Gecko. Previous drilling at Barking Gecko intersected mineralised zones including 45 metres at 222 ppm eU3O8, 21 metres at 886 ppm eU3O8, and 27 metres at 251 ppm eU3O8. Core Energy plans to first consolidate historical exploration data, conduct geological and geophysical analysis, and identify priority targets to screen targets for the subsequent initial drilling programme.

With the inclusion of the Nova project, Core Energy's uranium exploration tenure in Namibia will expand to approximately 826.9 square kilometres, which also includes its 100%-owned Gemsbok (EPL9725) and Oryx (EPL9652) uranium exploration licences.