Vatic Ventures to acquire uranium properties in Namibia

GlobalData

Wed, Apr 30, 2025, 4:00 AM 3 min read

Canada-based exploration and improvement institution Vatic Ventures has entered into a stock acquisition statement to get a 100% involvement successful backstage institution Velvet Clean Energy, taxable to support from the TSX Venture Exchange (TSXV).

The backstage institution holds rights to get up to an 80% involvement successful EPL 8289 (ZOYA property), and up to a 90% involvement successful EPL 8735 (GALORE property), some located successful the uranium state of Erongo wrong the Alaskite Alley successful Namibia.

The ZOYA spot spans 44.62km² and the GALORE spot 87.65km² wrong a jurisdiction known for important uranium production. The properties are strategically located adjacent the Husab and Rossing uranium mines, with entree to infrastructure.

Vatic volition contented 7.5 cardinal post-consolidation communal shares to Velvet shareholders astatine a deemed terms of C$0.06 ($0.043) per stock nether the agreement.

For EPL 8289, Velvet tin gain an archetypal 70% involvement by making currency payments totalling $600,000 (£449.05m) and issuing shares valued astatine $400,000. The archetypal 70% involvement vests with currency payments dispersed until 31 March 2027 and stock issuances connected specified dates successful 2026 and 2027.

Velvet indispensable besides conscionable a minimum expenditure work of $3m implicit 4 years, oregon $1.5m implicit 3 years, to workout the 2nd enactment to get an further 10% interest.

The presumption for EPL 8735 necessitate currency payments of $200,000 and stock issuances worthy $150,000 to gain an 80% interest. An further 10% tin beryllium acquired upon backing further exploration and a feasibility study, with the acquisition terms contingent connected the results.

Upon completion of the transaction, Velvet volition go a wholly owned subsidiary of Vatic. The institution besides plans to alteration its sanction to Ballistic Energy Metals and consolidate its shares connected a three-old-for-one-new basis.

Vatic CEO Loren Currie said: “These uranium exploration assets are contiguous and connected onslaught with immoderate of the largest uranium mines successful the world, Husab the 3rd and Rossing the 7th largest uranium deposit worldwide, and it besides helps to beryllium situated successful 1 of the apical mining jurisdictions successful Africa, with a tremendous grounds of uranium production.

“The spread betwixt uranium proviso and request has been persisting connected the marketplace and is predicted to widen adjacent much due to the fact that of the degradation of the uranium proviso manufacture implicit a decennary of prolonged debased prices and with galore much governments turning to atomic powerfulness for unafraid cleanable baseload power.

“We foresee immense challenges to conscionable caller request successful the mean to agelong term, which volition thrust uranium prices up and render uranium resources specified arsenic those that we anticipation to observe connected EPL 8289 and EPL 8735 importantly valuable.”