The directors of Stranger Holdings plan to make a mine investment decision over the Henkries uranium deposit, in the Northern Cape, South Africa, within two years.
In a notice to shareholders regarding the publication of a prospectus, on October 2, the company said it was hoping to develop the project as fast as possible, with a small-scale uranium mine to be developed between nine and 18 months after a mine investment decision is made.
Stranger Holdings has entered into agreements to acquire an initial 50.1% indirect stake in Desert Star Trading 130 – the owner of the Henkries deposit.
The indirect ownership will be acquired through the acquisition of two intermediary holding companies – Mayflower Energy Metals (MEML) and Neo Uranium Africa (Nursa). MEML owns 100% of the share capital of Nursa, which, in turn, holds 50.1% of the share capital of Desert Star, along with an earn-in option to increase its interest to 70%.
The Henkries project is a 742 km2 prospecting right under exploration. It includes a uranium deposit that was originally explored by the Anglo American Corporation in 1979, and later developed by subsequent rightholders, with an estimated mineral resource of 4.7-million pounds of uranium.
Stranger’s strategy is layered on a short-term (two-year) development approach to generate cash flow from the Henkries project with a view towards building a longer-term (eight-year) exploration and portfolio growth strategy to develop the highly prospective Northern Cape region of South Africa and, potentially, broader regional expansion into energy metals property holdings globally.
Stranger has conditionally raised gross proceeds of £4.9-million pounds to satisfy MEML’s acquisition-related liabilities, MEML’s fees and costs; satisfy, in full, trade creditors of Stranger; and for ongoing working capital to advance the Henkries project to a production decision.
Stranger also plans to change the company's name to Neo Energy Metals and will hold a general meeting in November to give shareholders the opportunity to vote on the proposed name change.