Australian miner Peninsula Energy Ltd (ASX: PEN) is gaining access to major Uranium-molybdenum reserves in South Africa.
The company plans to acquire a 74 percent interest in 36 prospecting rights that reach across 5,600 square kilometers of the Karoo Basin, Proactive Investors reports.
It’s quite a lucrative deal, as the area known as the ARSA Projects includes what might be the single biggest deposit of Uranium-molybdenum in the entire Basin.
This acquisition adds to Peninsula’s portfolio, coming after a successful operation in Wyoming in the U.S.
Peninsula will first pay $5 million in fully paid ordinary shares to ARSA, determined by the volume weighted average of Peninsula’s shares for the 30 days prior to issuance. The first $1 million is due within the first month of signing all agreements.
In a second phase, $45 million will be paid to ARSA once a Banking Feasibility Study concludes and financing for 50 percent of the ARSA projects development funding is secured. Peninsula may pay this in cash or shares.
The Share Purchase Agreement governing this deal indicates that Tasman RSA Holdings, a wholly owned subsidiary of Peninsula, has acquired 74 percent of issued share capital for all 36 prospecting rights.