Uranium developer Neo Energy Metals has entered into a strategic funding agreement with a UK-based investment group that will provide up to £8 million to support the advancement of the Beisa uranium and gold project in South Africa.
The funding is aimed at accelerating development activities as the company progresses toward acquiring the Beatrix 4 Shaft mine and the Beisa project from Sibanye-Stillwater.
The investment group has already advanced £1.5 million to Neo Energy following the placement of 166 million new ordinary shares at an issue price of £0.09 per share. In addition, the company has completed a further placing of 111 million ordinary shares at the same price, raising an additional £1 million.
Subject to receiving all required regulatory approvals in South Africa for the acquisition, the UK-based investor will have the right to provide a further £6.5 million in convertible loan funding within ten days of approval. Neo Energy expects these approvals to be finalised before the end of March.