“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,” comments executive chairman Govind Friedland.
“GoviEx will now focus on completing a Preliminary Economic Assessment (PEA) based on the consolidated land holding,” he continues.
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.
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, which holds the Kariba Valley tenement, and Chirundu Joint Ventures Zambia, which holds the Chirundu tenements.
In exchange, GoviEx issued African Energy three million common shares of GoviEx and warrants of GoviEx to purchase 1.6 million common shares of GoviEx.
Each consideration warrant is exercisable until 30 October 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 day volume weighted average price of GoviEx’s common shares on the TSX Venture Exchange 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.