URU will be seeking a Black Economic Empowerment (BEE) partner to help develop the Zebediela nickel project in South Africa. Under South African law, all mining projects are required to have at least 26% BEE equity ownership.
This comes after the base metals and uranium explorer and development company has completed its due diligence obligations with respect to Umnex Minerals Limpopo and confirms its 100 per cent interest in Zebediela.
“We have always seen the value and potential of the Zebediela Nickel Project, despite it being low grade, its size, continuity of grade and relatively easy mining makes it an incredibly large project with huge potential and long mine life, for what is in mining terms, low CAPEX. Naturally, we are delighted to have acquired 100 per cent of this world class project and look forward to updating investors on its progress,” says David Subotic, Chairman of URU Metals.
With the completion of due diligence the consideration of 33,194,181 shares will be issued as per the terms of the deal announced on 11th December 2013. URU will issue the first tranche of 16,563,896 million new URU shares to Umnex – these are free from trading restrictions. Upon obtaining the consent of the Minister, URU will issue the second stage consideration of 16,630,285 shares of URU to Umnex. These are subject to a lock-in agreement under which 3,326,057 shares will be released from lock-in on quarterly intervals.