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Marenica Energy is planning to ramp up exploration

October 28, 2020

Marenica Energy is planning to ramp up exploration

The company has opened a Share Purchase Plan (SPP) seeking to raise $3.75 million to support Marenica’s ongoing exploration on the 730km2 Namibian tenement, as well as at several other key sites.

The company has opened a Share Purchase Plan (SPP) seeking to raise $3.75 million to support Marenica’s ongoing exploration on the 730km2 Namibian tenement, as well as at several other key sites.

These include the Koppies deposit (where mineralisation has already been identified) in Namibia, and the Angela, Minerva, and Oobagooma projects in Australia.

These deposits combined hold over 90 million pounds of uranium resources, in two of the most prolific countries for uranium production globally. Based on World Nuclear Association data the top 5 uranium producers are:

The Hirabeb site alone contains mineralisation for 30 kilometres along a palaeochannel (historic river bed), which is believed to be the most significant uranium discovery in Namibia since Husab in 2008.

This capital raise will support the company to define the full extent of the Hirabeb palaeochannel system and define drill targets which will be drilled over the course of the next 12 months.

The SPP opened on Thursday 22 October, with investors able to purchase shares at $0.088 (a 10% discount to the 5 day VWAP of the 5 days leading up to announcement of the SPP).

The scheduled SPP closing date is 10 November.

Rising demand for yellowcake

Marenica’s capital raise comes as demand for nuclear power is beginning to surge – in 2019 nuclear plants supplied 2657 TWh of electricity, up from 2563 TWh in 2018.
Uranium prices are also expected to rise amid fears of a shortfall in uranium production by 2022.

These gains come off the back of leading uranium producer – Khazakstan’s KazAtomProm – cutting production by 20 per cent for the foreseeable future due to the ongoing effects of COVID-19.

As of 2018, a further 55 nuclear power plants are under construction and due to join the 450 power plants already responsible for producing 10 percent of the world’s power.

Marenica’s patented U-pgrade beneficiation process (developed in conjunction with the CSIRO) will enable the business to extract much-needed uranium with a capital and operating expenditure up to 50 percent less than the cost of conventional beneficiation.

This, paired with its significant deposits, leave Marenica well-placed to benefit from the world’s gradual transition away from fossil fuels.

 

On Wednesday, 4th November we have invited Marenica Energy Managing Director Murray Hill to speak at a special live investor briefing. If you would like to attend you can book your spot here.

 

Reach Markets have been engaged by MEY to help manage their investor communications. As the advisers assisting in the management with the Share Purchase Plan (SPP), Reach Markets may receive fees depending on whether the SPP is taken up by investors

 

Sources:

 


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