-          NGX has entered into two binding earn-in joint venture agreements for two Exclusive Prospecting Licence applications (EPL) in Namibia

 

-          Both EPLs are located in the Erongo Region of Namibia, one of the world’s best-known uranium districts with multiple operating mines in the area

 

-          The acquisition of these uranium project applications enhances the Company’s focus on clean energy minerals in Africa and are complementary to NGX’s existing natural graphite assets in Malawi

 

-          The Company’s downstream strategy and anode qualification program from its natural graphite project base in Malawi are continuing, with ongoing testwork programs and the recent appointments of two highly experienced commercial and technical experts

 

22 July 2024 – NGX Limited (NGX or the Company) is pleased to announce that the Company has entered into earn-in joint venture agreements to acquire two uranium exploration project applications in Namibia. These projects enhance the Company’s focus on clean energy minerals in Africa and are complementary to NGX’s existing graphite assets in Malawi.

 

Figure 1: Regional Map of EPL9921 EPL9629 applications including neighboring major uranium mines in the area

 

The Damara uranium belt of Namibia is one of the world’s best known uranium districts. With major uranium operations including Rio Tinto’s Rossing mine, China General Nuclear Power Group’s (CNG) Husab mine, Paladin’s Langer Heinrich mine and Bannerman Energy Limited’s (Bannerman) Etango deposit.

 

Rossingburg (EPL9921) is located in the main uranium production hub of the central Damara uranium belt, between the Rossing uranium mine and Etango uranium project. The Rossingburg licence application area shows evidence of widespread uranium mineralisation intercepted in drilling by previous explorers including Rio Tinto and Bannerman.

 

Tubusis (EPL9629), to the northeast of Swakopmund, is in an under-explored region of the Damara belt. The licence area was also the subject of limited historical exploration by previous permit holders.

 

NGX geologists recently inspected both licence application areas, which showed evidence of historical exploration and outcropping alaskite leucogranites units, prospective to host uranium mineralisation.

 

NGX’s Executive Director, Matt Syme, commented:

 

“While NGX has been progressing permitting and processing testwork on our flagship graphite projects in Malawi, we have also been looking for opportunities to expand our clean energy minerals portfolio in Africa, to meet the world’s growing need for carbon free energy. Our management group includes considerable and very successful experience in uranium exploration, so this is a natural addition to our portfolio. We are very optimistic about the outlook for the uranium market and Namibia remains the premier uranium exploration environment in Africa.”

 

For further information, please contact:

 

Matt Syme

Executive Director

Tel: +61 8 9322 6322

 

Sam Cordin

Executive

Tel: +61422 799 087

 

ROSSINGBURG (EPL9921)

 

Rossingburg (EPL9921) (Rossingburg Project) a 47km2 licence application, is located in the main uranium production hub of the central Damara uranium province, less than 20km from both the Rossing uranium mine and Bannerman Energy Limited’s (Bannerman) Etango uranium Project. The Rossingburg Project area includes extensive outcropping alaskites and encountered widespread uranium mineralisation in drilling by past explorers.

 

Figure 2: EPL9921 with overlayed by geological mapping by Namibia Mines Ministry

 

The Rossingburg Project has been historically explored by Bannerman as part of their Etango project, where Bannerman recently announced the granting of the Mining Licence. Prior to Bannerman, Rio Tinto held the ground exploring for various commodities in the 1970’s, including uranium.

 

Refer to Bannerman’s announcements to the Australian Securities Exchange on 1 May 2008 and 22 March 2011 for historical exploration results. NGX plans to collate all historical data available and undertake a comprehensive data review during the application period, while the EPL is pending grant.  Where possible, NGX may publish historical exploration results in accordance with JORC 2012.

 

Figure 3: Rossingburg topography with historical drill collars still visible, photograph taken during a due diligence site visit by NGX

 

Figure 4: Drone photo of the Rossingburg landscape. The lighter alaskite unit can be seen to extend north-east along and within the north-western boundary of the licence application area

 

TUBUSIS (EPL9629)

 

Tubusis (EPL9629), a 113km2 licence application, to the northeast of Swakopmund, is in an under explored region of the Damara belt. NGX geologists visited the licence application area which showed outcropping Alaskite leucogranites units, prospective to host uranium mineralisation.

 

Tubusis is on the Erongo Complex which consists of basal sediments, which are overlain by basaltic and rhyodacite. The complex is cored by intrusive granodiorites and monzogranites, whilst the outer rim is intruded by Erongo Granite.

 

Figure 5: EPL9629 overlayed by geological mapping by Namibia Mines Ministry indicating alaskite targets

 

The Company is in the process of acquiring and reviewing historical exploration information for the area. 

 

The prospective granitoid in Figure 6 is a garnetiferous leucogranite or alaskite, dominated by quartz and feldspar with minor garnet, biotite and tourmaline. Regionally, alaskites are considered targets for uraniferous mineralisation. Future exploration programs over the licence will test their prospectivity.

 

Figure 6: Drone photo taken by NGX during a recent due diligence site visit at Tubusis

looking over an out-cropping alaskite

 

TRANSACTION DETAILS

 

NGX has executed two binding earn-in joint venture agreements to earn up to an 85% interest in both EPL9921 and EPL9629 (EIA) between Hahndorf Investments CC and Magdalena Appolus (respectively) (together, Vendors).

 

Under both EIAs the Vendors grant NGX (or its nominee) the exclusive right to acquire up to 85% of the legal and beneficial interest in the EPLs.

 

NGX (or its nominee) and the Vendors will form joint venture companies (the Joint Venture Companies) for the purposes of exploration, and if appropriate, the mining and development of the EPLs.

 

The EIAs include the following Conditions Precedent: 

 

(i)          NGX completing due diligence to its sole satisfaction;

(ii)          the Vendors obtaining ministerial approval and all such other approvals as required from the relevant authorities for the grant of the licence applications, subject to such licence conditions as may be acceptable to NGX;

(iii)          NGX incorporating the Joint Venture Companies;

(iv)          the Vendors obtaining ministerial approval and all such other approval as required from the relevant authorities to transfer the licence to the Joint Venture Company, subject to such licence conditions as may be acceptable to NGX, and the transfer of the licence to the Joint Venture Company occurring; and

(v)          if applicable, the Namibian Competition Commission unconditionally approving in writing the transactions as contemplated under the EIAs as required by the Competition Act, 2003 (or if such approval is conditional, each of the parties on whom such conditions are imposed having approved such conditions in writing and delivered such approval to the other party).

 

Sources

 

Bannerman Energy Limited ASX Announcement titled Re-Probing of Historic Holes Highlight New Discovery dated 1 May 2008: https://announcements.asx.com.au/asxpdf/20080501/pdf/318xbc2y9126f0.pdf

 

Bannerman Energy Limited ASX Announcement titled Bannerman Exploration Update dated 22 March 2011 https://announcements.asx.com.au/asxpdf/20110322/pdf/41xl651dgz4tph.pdf

 

Forward Looking Statement

 

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on NGX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of NGX, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. NGX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

 

This announcement has been authorised for release by the Company’s Executive Director, Matt Syme.