Deep Yellow Ltd (DYLLF) Nova Joint Venture, Namibia - A$5m Earn-In By Core Energy (CEMLF)
Deep Yellow Ltd (ASX:DYL) (FRA:JMI) (OTCMKTS:DYLLF) announced its wholly owned subsidiary Reptile Mineral Resources and Exploration (Proprietary) Ltd (RMR) has entered into an earn-in agreement with Core Energy Minerals Limited (Core Energy) (ASX:CR3) (OTCMKTS:CEMLF) in which Core Energy can acquire an equity interest in the incorporated joint venture company, Nova Energy (Namibia) (Proprietary) Limited (NJV) in Namibia.
Highlights
- Two phase, A$5M earn-in by Core Energy Minerals Limited to acquire up to a 51% interest in the Nova Joint Venture.
- Core Energy will be appointed as the Manager of the Nova Joint Venture during the Earn-in and will fund all exploration expenditure and operations during the earn-in period.
The NJV holds Exploration Prospecting Licence (EPL) 3669 and EPL 3670, together covering approximately 600km2 west and south-west of the Langer Heinrich uranium mine (see Figure 1*). These EPLs are considered non-core assets of Deep Yellow.
The current shareholders in the NJV are RMR (65% equity interest and current manager of the NJV), Nova Energy (Africa) (Pty) Ltd (Nova Africa) (25% equity interest and subsidiary of former ASX listed Toro Energy Ltd) and Sixzone Investments (Pty) Ltd (Sixzone) (10% equity interest and local Namibian entity).
Core Energy, under the terms of the earn-in agreement, can earn up to a 51% equity interest in the NJV on expenditure of A$5M (in aggregate) as follows:
- Phase 1 - Core Energy can acquire a 25% interest in the NJV on expenditure of A$2M within 18 months from the commencement of the earn-in arrangements; and
- Phase 2 - Core Energy can acquire a further 26% on expenditure of A$3M within 24 months from the end of Phase 1.
Under the terms of the earn-in agreement Core Energy are appointed as the Manager of the NJV during the earn-in arrangements. The remaining NJV shareholders will be free carried until the expenditure commitments of Core Energy are satisfied and thereafter the other parties will be required to contribute on a pro-rata basis (except for Sixzone whose share will be carried and paid back from future dividends).
After Phase 1 has been completed, the equity interests of the NJV will be Core Energy 25%, RMR 48.75%, Nova Africa 18.75% and Sixzone 7.5%. After Phase 2 has been completed, the equity interests in the NJV will be Core Energy 51%, RMR 31.85%, Nova Africa 12.25% and Sixzone 4.9%.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/I9VH1100
Investors: Greg Field Managing Director - CEO +61 8 9286 6999 info@deepyellow.com.au Media: Peter Klinger Director - Purple +61 411 251 540 pklinger@purple.au
News Provided by ABN Newswire
