GoviEx Uranium Inc. has completed its previously announced transaction to acquire the uranium mineral interests of African Energy Resources Ltd. in Zambia. See GoviEx’s news release dated March 6, 2017.
Govind Friedland, Executive Chairman of GoviEx, commented, “The combination of African Energy’s Chirundu and Kiraba Valley tenements with GoviEx’s Mutanga Project finally unites these neighbouring properties, and significantly expands and improves the potential economies of scale. GoviEx will now focus on completing a Preliminary Economic Assessment based on the consolidated land holding.”
The Chirundu and Kariba Valley properties acquired as part of the Transaction include a mining licence, a prospecting licence, and a pending exploration licence. The Chirundu mining licence covers two uranium deposits – Gwabe and Njame – containing Joint Ore Reserves Committee (JORC) mineral resources of 7.4 Mlb U3O8 in the Measured and Indicated categories, plus 3.8 Mlb U3O8 in the Inferred category (see tables below for detailed breakdown).
GoviEx’s acquisition of the Chirundu and Kariba Valley properties, combined with the Mutanga Project, represents a regional consolidation and will result in contiguous tenements of approximately 140 km in strike length, including three mining licences, containing combined Mineral Resources of 15.2 Mlb U3O8 in the Measured and Indicated categories and 45.2 Mlb U3O8 the Inferred category. Sections between the known deposits remain under-explored with a number of prospective drill targets which could further expand GoviEx’s NI 43-101 resource.
Upon closing of the Transaction, GoviEx has one of the largest combined uranium Mineral Resource bases amongst its peer group, with combined Measured and Indicated Resources of 131.7 Mlb U3O8 and Inferred Resources of 76.9 Mlb U3O8 estimated in accordance with NI 43-101.
Under the terms of the Transaction, GoviEx acquired African Energy’s wholly-owned Zambian subsidiaries, Muchinga Energy Resources Limited, which holds the Kariba Valley tenement, and Chirundu Joint Ventures Zambia Ltd., which holds the Chirundu tenements. In exchange, GoviEx issued African Energy 3 million common shares of GoviEx (the “Consideration Shares”) and warrants of GoviEx (the “Consideration Warrants”) to purchase 1.6 million common shares of GoviEx.
Each Consideration Warrant is exercisable until October 30, 2020, subject to certain acceleration provisions, for one common share of GoviEx at a price-per-share of US$0.23 (being the United States dollar equivalent of 160% of the ten (10) day volume weighted average price of GoviEx’s common shares on the TSX Venture Exchange (“TSX-V”) calculated from the last trading day before the closing of the Transaction).
The Consideration Shares, Consideration Warrants and any common shares issuable upon exercise of the Consideration Warrants are subject to certain contractual transfer restrictions until April 30, 2018.
The Transaction is subject to the receipt of final approval of the TSX-V.
Figure 1: Regional geology and key uranium deposits in the Karoo BasinTo view an enhanced version of Figure 1, please visit: http://orders.newsfilecorp.com/files/5017/30020_a1509145759358_29.jpg
Figure 2: Mutanga, Chirundu and Kariba Valley licences To view an enhanced version of Figure 2, please visit: http://orders.newsfilecorp.com/files/5017/30020_a1509145759795_29.jpg
Njame and Gwabe Mineral ResourcesDeposit Tonnes (Mt)U3O8 (ppm )U3O8 (Mlbs) Njame Mineral ResourceMeasured 2.7 350 2.1 Indicated 3.7 252 2.1 Inferred 6.6 240 3.5 Gwabe Mineral ResourceMeasured 1.3 237 0.7 Indicated 3.6 313 2.5 Inferred 0.8 178 0.3
Note: Njame mineral resource is as of January 2010; Gwabe mineral resource is as of March 2009. The updated resource estimates are completed using the Ordinary Kriging method, and classified with reference to the criteria set out in the Australasian Code For Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, December 2004).
Mutanga Uranium Project Deposit U3O8 Lower Cut-off Measured Indicated Inferred Tonnes (Mt)U3O8(ppm)U3O8(Mlbs)Tonnes (Mt)U3O8 (ppm)U3O8(Mlbs)Tonnes (Mt)U3O8(ppm)U3O8(Mlbs) Mutanga 100 1.88 481 2.0 8.4 314 5.8 7.20 206 3.3 Mutanga Exts 200 0.50 340 0.4 Mutanga East 200 0.20 320 0.1 Mutanga West 200 0.50 340 0.4 Dibwe 100 17.00 234 9 Dibwe East 100 39.80 322 28.2 Total 1.88 481 2.0 8.4 314 5.8 65.20 287 41.4
Notes: In order to comply with the requirement that a mineral resource must have reasonable prospects for economic extraction, a third party (Roscoe Postle and Associates, “RPA”) prepared a preliminary conceptual Whittle pit optimization for reporting of mineral resources within the conceptual pit shell, based on a uranium price of $70/lb U3O8.Mutanga’s mineral resources as at September 12, 2013 are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards – For Mineral Resources and Mineral Reserves” in accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (the Instrument). Mineral reserve and mineral resource estimates reflect the company’s reasonable expectation that all necessary permits and approvals will be obtained and maintained.The Mineral Resource Statement was prepared Mr. Malcom Titley as the Qualified Person (QP) as defined by the CIM Definition Standards and Section 5.1 of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, Form 43-101F1 and Companion Policy 43-101CP).
Source: Technical Report filed “NI 43-101 Technical Report Mineral Resource Estimates for the Mutanga Uranium Project, Denison Mines Corp Zambia Africa”, dated September 12, 2013. Prepared by CSA Global (UK) Ltd for Denison Mines Corp.Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral Resources are subject to infill drilling, permitting, mine planning, mining dilution and recovery losses, among other things, to be converted into mineral reserves. Due to the uncertainty associated with inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to indicated or measured mineral resources, including as a result of continued exploration.
For GoviEx, the scientific and technical information disclosed in this release has been reviewed, verified and approved by Dr. Rob Bowell, a chartered chemist of the Royal Society of Chemistry, a chartered geologist of the Geological Society of London and Fellow of the Institute of Mining, Metallurgy and Materials, who is an independent Qualified Person under the terms of National Instrument 43-101 for uranium deposits.
For African Energy, the scientific and technical information disclosed in this release has been reviewed Dr. Frazer Tabeart (an employee and the Managing Director of African Energy), who is a member of The Australian Institute of Geoscientists. Dr. Tabeart has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Tabeart consents to the inclusion of the data in the form and context in which it appears.
About GoviEx Uranium
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship Mine Permitted Madaouela Project in Niger, its Mutanga Project in Zambia, and its other uranium properties in Africa.