Under the terms of the agreement, AEM will acquire all of the outstanding shares of Delta for a purchase price of $US5 500 000 that shall be satisfied as follows: at closing of the transaction, a cash payment of US$500 000 and the issuance of AEM’s common shares equal to a value of US$2 000 000; and subject to the re-issuance of the Falea license, the issuance of AEM’s common shares equal to a value US$3 000 000. AEM will also grant GoviEx a 3% net smelter royalty on the Falea project.
The Falea project is a polymetallic (uranium, silver, and copper) deposit located in Mali, approximately 350 km west of the capital Bamako. The Falea and Bala areas are highly prospective for unconformity type polymetallic uranium copper-silver deposits.
The sale of the Falea project is part of GoviEx’s strategy of focusing on its two advanced minepermitted projects, Madaouela in Niger and Muntanga in Zambia. Whilst the Falea project will be managed by AEM, GoviEx will retain a considerable interest in the project, therefore maintaining a potential upside on any future discoveries.
Daniel Major, CEO of GoviEx, commented:
“This is a strategic deal which will allow GoviEx shareholders to maintain a significant interest in the Falea project, whilst allowing the company to concentrate its efforts on the continued exploration and development of its two mine-permitted, advanced stage development uranium projects, Madaouela and Muntanga. Falea is a solid project with fantastic exploration potential and African Energy Metals is well placed to manage its development going forward, with in country knowledge and experience.”
Stephen Barley, Executive Chairman of African Energy Metals, commented:
“We are excited to become involved in the Falea project. It is a polymetallic project with a significant uranium resource. GoviEx will become an important shareholder of African Energy Metals and our shareholders will have the continuing benefit of their knowledge and mining expertise. Less than 5% of the property has been explored, so there is substantial exploration upside for uranium, copper, gold, and silver.”