Arkle Resources (AIM:ARK) is acquiring an 85% interest in privately held Namibia Uranium for £2.03 million ($3.97 million), which will be paid through a combination of cash and shares.
Namibia Uranium holds four exclusive prospecting licences in the Erongo region of Namibia – which are adjacent to three major uranium deposits called Trekkopje, Marenica, and Rossing.
The company is also raising £1.7 million through issuing 425 million shares at €0.0025 each at 0.4p per share.
Arkle will use the funds towards acquiring Namibian Uranium, as well as a two-phase exploration program.
Phase one exploration work will concentrate mainly on two of the exclusive prospecting licences and will include horizontal loop electromagnetic survey, an airborne radiometric and magnetic survey, downhole logging of historical drillholes and additional sampling activities.
Meanwhile phase two will focus on targets developed from phase one and will include detailed mapping, up to 4,000m of reverse circulation drilling and an updated technical report. Phase two will also include further geophysical surveys.
Executive Chairman John Teeling says the fundraise was oversubscribed which is testament to the quality of these exploration assets, the recognition of Namibia as a tier-one uranium jurisdiction and the fundamentals of the uranium market.
Arkle believes the beginning of a sustained global nuclear expansion cycle is underway, and both uranium spot market and long-term contract prices will remain robust.
Namibia is considered tier one supplier to global utilities and the world’s third largest uranium producer. The company notes the recent transaction positions Arkle as a “strong platform” for uranium exploration and development in the London market.
Arkle Resources is a gold, zinc, lithium, and uranium explorer focused on discoveries in Ireland, Botswana, Zimbabwe, and now Namibia.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
