Everest Metals (ASX:EMC) has signed a deal to back the IPO of Cobold Metals, which is looking to make its ASX debut later this year.
Cobold is seeking $5 million through the issue of 25 million shares at $0.20 each.
Under the non-binding term sheet, Cobold Metals will acquire 100% of the Amadeus and Georgina uranium projects in the Northern Territory, as well as the Mukinbudin Project in Western Australia, the purchase of which Everest finalised today.
Everest Metals acquired the Mukinbudin Project from Crucible Resources for an initial payment of $50,000, as well as deferred consideration of $100,000 cash and 3.5 million shares valued at $700,000.
Everest has paid the initial $50,000, but the deferred consideration will be picked up by Cobold once it is listed.
For all three uranium projects, Everest Metals, which has a market capitalisation of $19.71 million, will receive 13 million shares in Cobold — representing 22.8% of the equity on issue — and $100,000 cash from Cobold.
Everest Metals executive Chairman Mark Caruso says Cobold provides a great home for Everest’s uranium development aspirations.
“This transaction allows EMC to continue to focus on its core gold and critical mineral assets whilst giving shareholders maximum upside to its uranium strategy,” he says.
“The uranium market outlook continues to be very strong with nuclear demand expected to continue outpacing supply over the mid-term to enhance long-term energy security and attainment of net zero goals.”
Everest’s uranium projects cover 10,417km2 in the Northern Territory and Western Australia.
The Mukinbudin Project hosts a historical inferred resource of 6.2 million tonnes at 237 parts per million uranium for 3.25 million pounds triuranium octoxide.
Uranium is considered a critical mineral that has emerged as one of the most important energy resources over the past 60 years. Uranium for nuclear technology extends beyond energy production to the production of medicines for life saving diagnosis and treatment.
Global demand for uranium was forecasted to reach 209 million pounds of triuranium octoxide by 2035. While demand will continue growing, the supply of uranium is expected to drop over time. Everest Metals says new assets are required to fill the supply gap.
Write to Aaliyah Rogan at Mining.com.au
Images: Everest Metals
