Madison Metals entered into an agreement to acquire a 23% interest in mining licence (ML) 121 in Namibia through the acquisition of a 24% ownership interest in Namibia Nuclear Corporation by way of a share purchase agreement.
The 24% interest was bought for a combination of N$35 million cash and two-million common shares in the capital of Madison Metals.
ML 121 is located in the Erongo uranium province of Namibia, where Madison already holds rights to exclusive prospecting licence (EPL) 7011.
“The uranium outlook is continuing to strengthen because it is a critical metal for energy transition and energy security. Madison’s strategy of acquiring highly prospective concessions in a tier-one uranium jurisdiction provides the company with an opportunity to establish itself as a key player in the uranium industry,” Madison Executive Chairperson and CEO Duane Parnham said.
“ML 121 has significant potential for leucogranite-hosted uranium mineralisation, given that its geological and structural setting bears a strong resemblance to the Rössing deposit, with uranium-bearing granites concentrated at the Khan-Rossing boundary within the north-northeasterly-trending deformation corridor of the Welwitschia magnetic lineament.”
Madison is conducting due diligence and expects to complete the transaction later this year.
