Prime Highlights:
- Neo Energy Metals has raised up to £8 million to advance the Beisa Uranium and Gold Project, boosting its shares on the London Stock Exchange.
- The funding will help the company reopen the mine, refurbish shafts, hire staff, and restart the processing plant.
Key Facts:
- The Beisa Mine in South Africa’s Free State Province holds 1.2 million ounces of gold and 26.9 million pounds of uranium.
- The company will also repay £1.176 million of debt by issuing new shares at 0.9 pence each.
Background:
Neo Energy Metals has secured up to £8 million in funding to move forward with its Beisa Uranium and Gold Project in South Africa, boosting its shares on the London Stock Exchange.
The company received an initial £1.5 million from a UK-based investor through the sale of 166.7 million new shares at 0.9 pence each, a 16.1% increase over the previous closing price. Another £1 million was raised by issuing 111.1 million shares at the same price.
The investor has also agreed to provide up to £6.5 million in a convertible loan once Neo Energy receives approval from South African regulators for its Beisa Mine acquisition from NYSE-listed Sibanye-Stillwater. This loan will carry a 5% interest rate and be priced at a 10% discount to the ten-day average share price.
Under the agreement, the investor can nominate one non-executive director and one board observer if they keep at least a 5% stake in the company. The money from the share sales will go towards reopening the mine, fixing the shafts, hiring workers, and restarting the processing plant. Neo Energy expects the acquisition to be completed in the first quarter of 2026.
The Beisa Mine, in South Africa’s Free State Province, holds 1.2 million ounces of gold and 26.9 million pounds of uranium according to SAMREC standards. The mine produced gold and uranium for more than 30 years before being put on hold in late 2023.
Neo Energy also said it will repay £1.176 million of debt by issuing 130.7 million shares at the same price as the recent placements. CMC Markets UK Plc, trading as CapX, acted as the sole agent for the share sales.
This investment provides Neo Energy Metals with the funds needed to restart the Beisa Mine and fully develop its gold and uranium resources.
