
Australian lithium exploration company Pioneer Lithium (ASX: PLN) has signed a binding agreement to acquire 100% of Rodon Metals Pty. Ltd., the owner of the Warmbad Uranium Project in Namibia.
The acquisition marks the company’s expansion into the uranium sector amid growing demand for nuclear energy.
Under the terms of the agreement, Pioneer Lithium will pay an exclusivity fee of N$945,724 ($50,000) in cash within seven days of execution.
Upon completion of the transaction, the company will disburse a further N$2.8 million ($150,000) in cash.
“This acquisition represents a defining moment for Pioneer, propelling us into the high-growth uranium sector with world-class projects in uranium-friendly jurisdictions in the United States and Namibia,” said Robert Martin, Pioneer’s Executive Chairman.
Pioneer will also issue 1.5 million fully paid ordinary shares at N$3.78 ($0.20) per share, totaling N$5.6 million ($300,000), within three months of completion.
Additionally, deferred consideration payments include N$28 million ($1.5 million) in cash upon announcing a JORC-compliant Mineral Resource Estimate of at least 30 million pounds of uranium ore with a grade between 101ppm and 199ppm U₃O₈.
A further N$19 million ($1 million) in cash will be paid upon achieving a JORC-compliant estimate of 30 million pounds with a minimum grade of 200ppm U₃O₈.
The agreement also includes a 2% net smelter return (NSR) royalty on all future production from the project.
“Both assets have had significant work completed, with approximately 31,000m of drilling at Warmbad. Skull Creek has a reported historical resource that requires further work to meet the current JORC code. We plan to methodically review historical data to define future exploration programs,” Martin said.
Pioneer intends to leverage existing exploration data from the Geological Survey of Namibia, conduct modern magnetic and radiometric surveys, and validate past drilling results through additional drilling campaigns.
The company will also explore untested radiometric anomalies and paleochannels using advanced techniques.
Due diligence for the acquisition has been completed, and the transaction is subject to regulatory and governmental approvals. Completion is expected in the first quarter of 2025.
The project vendor, Ropa Investments (Gibraltar) Limited, is an unrelated entity to Pioneer.