London-listed Neo Energy Metals’ 70%-owned South African subsidiary, Neo Uranium Resources Beisa Mine, has signed a site access and contractorship agreement with Sibanye Gold, a subsidiary of Sibanye-Stillwater, granting Neo Energy access to the Beatrix 4 Shaft mining area.

This will enable Neo Energy to begin a fully funded assessment programme while regulatory transfer of the Beatrix 4 Shaft mining right continues.

Neo Energy says site access will begin once the statutory appointment has been finalised – ahead of the Section 11 regulatory transfer being concluded. The company will be appointed as the sole and exclusive independent contractor during the interim period, with Sibanye-Stillwater providing its full support to Neo Energy.

As announced on June 4, Neo Energy and Sibanye-Stillwater agreed to extend the Phase 1 and Phase 2 regulatory approval deadlines to December 6 and June 6, 2027, respectively, to allow the Mineral and Petroleum Resources Development Act (MPRDA) transfer process to run its course.

Neo Energy says both parties remain confident of a positive outcome.

In parallel with this process, Neo Energy and Sibanye-Stillwater have agreed that the company should begin with pre-development work.

Under the terms of the agreement, Neo Energy is appointed as an independent contractor to carry out defined pre-development services on the Beatrix 4 Shaft mining area during this interim period, while Sibanye-Stillwater retains the mining right and statutory responsibility for compliance until transfer.

Neo Energy says it will not be permitted to undertake any mining activities prior to the transfer of the Beatrix 4 Shaft mining right and will be limited to defined implementation assessment activities only.

Neo Energy will fully fund the assessment programme, while Sibanye-Stillwater provides site access, information and reasonable assistance. The company says this further demonstrates Sibanye-Stillwater's continued support for Neo Energy.

Additionally, Neo Energy has commissioned a formal implementation assessment across three workstreams, noting that outputs will result in an updated resource estimate and implementation plan.

The workstreams include a gold processing plant refurbishment audit, a uranium processing circuit metallurgical study and a site-wide infrastructure assessment.

Together, the three workstreams are expected to take about eight months to complete at a budgeted cost of about £3.15-million, funded entirely by Neo Energy.

Neo Energy explains that the sequencing is deliberate.

By targeting gold production ahead of uranium commissioning, Neo Energy aims to generate early cash flow from the brownfield asset to assist in funding the uranium circuit build – derisking the overall programme and positioning New Beisa as one of the most capital-efficient uranium and gold developments in South Africa.

First gold production remains targeted for December 2027, followed by uranium.

"This agreement gets us on site and working, while the regulatory transfer runs its course.

“We now have a structured, costed roadmap across all three workstreams – gold plant refurbishment, uranium circuit design and site infrastructure – so that the moment the mining right transfers, we move straight into execution with minimum delay.

“Subject to the outcomes of the three workstreams our December 2027 target for first gold remains firmly in our sights,” says Neo Energy CEO Theo Botoulas.