Critical One Energy Inc., formerly known as Madison Metals Inc., has completed the sale of its Khan and Cobra uranium projects in Namibia to Canadian firm Dark Star Minerals Inc. in a deal valued at more than N$62 million (US$3.5 million).
Under the terms of the agreement, Dark Star will pay Critical One N$13.4 million (US$760,000) in cash and issue shares valued at approximately N$48.7 million (US$2.75 million). The payments will be made in stages over a two-year period.
Dark Star has already made an initial payment of N$2.7 million (US$150,000) and issued 14 million common shares to Critical One. Further payments include N$4.4 million (US$250,000) in cash and shares worth N$31 million (US$1.75 million) to be made by the second anniversary of the agreement.
“We are looking forward to working with Dark Star to accelerate the exploration and development of these two significant uranium projects in the world’s third-largest uranium-producing country, according to the World Nuclear Association,” said Duane Parnham, Founder, Executive Chairman and CEO of Critical One.
Once the total cash and share payments exceed US$3.5 million, Critical One will earn a 2% gross overriding royalty on all metals produced from the Khan and Cobra projects. Dark Star retains the right to buy back 0.5% of the royalty for US$1.5 million within 30 days of the start of production.
“As a significant shareholder and director of Dark Star, I will continue to contribute to the development of these two exciting uranium projects,” Parnham added.
Dark Star Minerals Inc., founded in 2021 and based in Vancouver, Canada, is an exploration and development company focused on critical mineral resources, particularly uranium.
Critical One Energy Inc. is a critical minerals and upstream energy company, with a portfolio that includes antimony-gold exploration in Canada and uranium investment interests in Namibia.
