C29 seeks transformative acquisition

C29 Metals (ASX:C29) has entered into a binding share sale and purchase agreement (SPA) with privately held CA Metals and Ulytau Resources to acquire 100% interest in the Ulytau Uranium Project in Kazakhstan. 

The $3.77 million market capitalisation company’s share price soared yesterday (20 March 2024) on the back of the announcement. 

Managing Director Shannon Green says: “After completing the due diligence process for the acquisition, recognising the quality of the Ulytau Uranium Project, the potential upside opportunity it offers, as well as the quality of the company’s existing projects, the opportunity to join C29 was a very exciting prospect.”

C29 plans to begin ground geological works immediately. Initial geological fieldwork will include identifying historic drill collars, field mapping, and technical document and data translation to establish a new geological database. 

The company aims to begin an initial drill program for historic data validation and testing of underexplored and unexplored areas across the tenement in Q3 2024. 

Under the agreement, C29 will pay $1.5 million worth of shares to shareholders of CA Metals and Ulytau Resources each, subject to shareholder approval. 

Ulytau Resources shareholders’ will also receive $1 million worth of shares in C29 upon the company announcing a JORC 2012 inferred Mineral Resource Estimate (MRE) of 3 million tonnes @ 0.2% triuranium octoxide (U3O8) on the project. 

The number of consideration securities to be issued will be determined based on a deemed issue price equal to the greater of the 20-day volume weighted average price (VWAP) of C29’s shares as traded on ASX and $0.07 each. 

Non-Executive Chairman David Lees says: “We are very excited to have secured a high-grade uranium project of this quality at a time where the uranium industry is experiencing unprecedented supply pressure, with spot prices at a 16-year high. 

The Ulytau Uranium Project represents a substantial opportunity for the company, with the project holding a non-JORC high-grade foreign estimate.”

C29 Metals also announces it has received firm commitments from investors to raise $3 million via a two-tranche placement, issuing about 42.857 million fully paid ordinary shares at $0.07 each, to fund exploration activities at Ulytau, acquisition costs, and general working capital. 

The company has engaged ARQ Capital to manage the placement. 

The issue price does not represent a discount to the last trading price of $0.07 on 13 March 2024, but does represent a premium of 6% to the 15-day VWAP of $0.066. 

Ulytau lies near Lake Balkhash in South Kazakhstan and sits near one of the ‘largest’ uranium deposits mined in the former Soviet Union. 

C29 Metals is a clean energy-focused company that is exploring and developing its portfolio of uranium and copper assets. 

As of 31 December 2023, the company had $953,000 cash and cash equivalents at hand, according to its latest quarterly report. 

Write to Aaliyah Rogan at Mining.com.au   

Images: C29 Metals 
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.