Toronto- and New York-listed Forsys Metals has appointed advisers Bacchus Capital to conduct a strategic review of its Norasa uranium project, in Namibia, given the “misalignment of flat or declining supply, versus growing demand”.
“The Norasa uranium project is one of the few post-DFS [definitive feasibility study], construction ready, uranium projects with a mining licence, which positions this asset as one of the only projects in the world able to potentially benefit from the near to mid-term expected supply shortages,” CEO Mark Frewin said on Monday.
The strategic review will consider, evaluate and compare a broad selection of potential options for the purpose of identifying opportunities to maximise the value of Norasa for the company’s shareholders.
Situated 25 km from Rio Tinto’s historically significant Rössing uranium mine, the Norasa project has mineral reserves of 90.7-million pounds of uranium oxide (U3O8). The completed DFS confirmed Norasa’s robust economics, with a 32% internal rate of return, a pre-tax net present value of $663-million, and $1.175-billion operating cash flow.
The Norasa plant throughput is expected to be 11.2-million tons a year, producing an average of 5.2-million pounds a year of U3O8.
Namibia, the fifth largest uranium producing country globally, is a mining-friendly jurisdiction with strong government support for the Norasa project.