GoviEx Uranium Acquires African Energy Uranium Assets in Zambia

Uranium (Nuclear Minerals) / Exploration, Mining, Marketing, & Acquisitions

Date posted: 03/29/17

GoviEx Uranium has concluded a definitive agreement with African Energy Resources to acquire its uranium mineral interests in Zambia. The transaction is intended to unify prospective uranium properties adjacent to GoviEx Uranium Mutanga mine. The combination of African Energy Resources Chirundu and Kiraba Valley tenements and GoviEx Mutanga project will allow us to unitize these neighboring properties, significantly enlarging and improving the potential economies of scale, says GoviEx executive chairman Govind Friedland. This acquisition complements their strategy to be the consolidator of compelling African uranium projects while the uranium price remains low, he added. Under the terms of the transaction, GoviEx will acquire coal-to-power focused junior African Energy wholly owned Zambian subsidiaries, Muchinga Energy Resources, which holds the Kariba Valley tenement and Chirundu Joint Ventures Zambia, which holds the Chirundu tenements. The Chirundu and Kariba Valley properties to be acquired as part of the transaction include a mining licence and two prospecting licences. The Chirundu mining licence covers two uranium deposits, Gwabe and Njame, containing JORC-compliant measured and indicated mineral resources of 7.4 Mlb U3O8, plus an additional 3.8 Mlb U3O8 in inferred resources. GoviEx acquisition of the Chirundu and Kariba Valley properties, combined with the Mutanga project, will represent a regional consolidation and will result in contiguous tenements of approximately 140 km in strike length. On completion of the transaction, GoviEx will own several contiguous tenements containing combined mineral resources of 15.2 Mlb U3O8 in the measured and indicated categories and 45.2 Mlb U3O8 the inferred category. In exchange, GoviEx will issue to African Energy 3 million common shares of GoviEx Uranium and 1.6 million common share purchase warrants of GoviEx. The sale of African Energy uranium projects is subject to various regulatory approvals.