Snow Lake Resources, a Canadian-headquartered minerals company, has finalised a binding letter of intent (LoI) to acquire an 85% interest in Namibia Minerals and Investment Holdings (Proprietary) Limited, the owner of the Engo Valley Uranium Project licence.
The acquisition will occur in two stages, and the project is situated along the Skeleton Coast in the Opuwo District of the Kunene Region.
First stage interest, Snow Lake will acquire 68% interest by making a cash payment of N$4.8 million (US$250,000) and spending N$3.9 million (US$200,000) on exploration through issuance of common shares valued at N$39 million (US$2 million) contingent upon due diligence completion.
Second stage interest, the company acquires additional 17% interest contingent upon US$800,000 expenditure within 12 months of the first stage interest acquisition.
Snow Lake retains 10% interest if the Share Purchase Agreement isn’t executed.
Discovered in 1973, the uranium mineralisation at Engo Valley has been subject to intermittent exploration efforts, primarily by Gencor from 1974 to 1980. This project is now recognised as a premier exploration endeavour.
“We believe the opportunity to acquire this interest in the Engo Valley Uranium Project fits well with our strategy of expanding our portfolio of clean energy and critical mineral projects, thereby transitioning our company into a diverse clean-energy company” commented Frank Wheatley, CEO of Snow Lake.
He said with a global focus on clean energy, uranium being a critical mineral, Namibia being one of the best mining jurisdictions in Africa with a long history of uranium exploration, development and production, they feel that the Engo Valley Uranium Project compliments their current portfolio of lithium assets in Manitoba.
“With the uranium market being in a major cyclical uptrend, the acquisition of the Engo Valley Uranium Project provides our shareholders with tremendous upside, particularly with drilling on the project to commence imminently,” he added.
