Deep Yellow’s (ASX:DYL) wholly owned subsidiary, Reptile Uranium Namibia, has been awarded a mining licence (ML237) from Namibia’s Ministry of Mines and Energy for its flagship Tumas Project.
The $747.14 million market capitalisation company says the award of ML237 represents another ‘key’ step towards production at Tumas and allows Deep Yellow to maintain its current timeline for a final investment decision (FID) to be made in Q3 2024.
Deep Yellow reports Tumas is set to become the 4th uranium mine in Namibia, and the project supports the company’s strategy of building a multi-jurisdictional, ‘globally significant’, and long-life uranium business.
The mining licence is valid for 20 years from the date of issue.
The licence follows the completion of Deep Yellow’s re-costing study, which delivered an uplift in project net present value (NPV) and internal rate of return (IRR) to US$570 million and 27%, respectively.
Deep Yellow Chief Executive Officer (CEO) and Managing Director John Borshoff says the licence is another key accomplishment in the progress of building a ‘reliable, geographically diverse, and long-term uranium producer’.
Deep Yellow is focused on progressing a ‘dual-pillar’ growth strategy to establish a globally diversified, tier-one uranium company.
The company’s portfolio contains the largest uranium resource base of any ASX-listed company. The Tumas Project is held by Deep Yellow through Reptile Uranium Namibia.
As of 30 September 2023, Deep Yellow had $27.258 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Deep Yellow
