By: Mining weekly

The transaction was concluded on December 6, 2024, with completion to occur within 24 months.

Neo says there remains one condition precedent outstanding, which is approval of the applications seeking approval under Sections 11 and 102 of the Mineral and Petroleum Resources Development Act.

This requires Sibanye-Stillwater to obtain approval under Section 102 from the South African Department of Mineral and Petroleum Resources to transfer the Beatrix 4 mining right out of their existing portfolio of mining rights in order to effect the sale.

The company explains that this transfer is required to be completed within 18 months from the signature date of the transaction, adding that this remains on track for completion within this defined timeline.

Once this approval has been granted, Neo says Sibanye-Stillwater can then submit the Section 11 application in order to transfer the mining right to the company's majority owned subsidiary, Neo Uranium Resources' Beisa mine.

As previously advised, Neo says the Beisa mine is planned to start operating in the second half of 2027, adding that this will be achieved in three phases over the next 18 to 24 months.

The first phase, an implementation assessment, is to evaluate the entire mining operation in order to accurately determine the capital cost and to update the mining plan.

This phase will take six to nine months to complete and is planned to begin during March.

The company explains that the estimated approval of the Section 11 application in the later part of this year will have no impact on this phase. This phase will be completed by means of contractor agreements which management are in the process of finalising.

The second phase is to finalise the optimal funding structure for the mine restart works over 12 months.

The final Phase 3 will be to ready the site for production. Phase 3 is estimated to take between six and 12 months, a timeframe which remains the same as previously communicated.

"Following our recent fundraising activities, the company has sufficient working capital to manage its expenses during this period while the remaining regulatory processes are concluded,” says Neo CFO De Wet Schutte.