Reviewed by Mila PereraSep 14 2022
Madison Metals Inc. declared that it had signed a share purchase agreement (SPA) on September 12th, 2022, under which it will purchase 24 Namibia Nuclear Corporation (Proprietary) Limited shares, representing a twenty-four percent (24%) ownership interest in Namibia Nuclear, to acquire a 23% interest in Mining Licence 121 (ML121).
Location of ML121, EPL-7011 owned by Madison, and uranium producing mines in Namibia’s Erongo Uranium Province. Image Credit: Madison Metals Inc.
Subject to a few preconditions outlined in the SPA, the consideration given to the vendors will consist of $2,000,000 (USD) and 2,000,000 common shares in the company’s capital that will be paid and issued on the closing date.
The famous Erongo Uranium Province of Namibia, Africa, is where ML121 is situated, where Madison already has the exclusive prospecting license (EPL-7011). Namibia has the fifth-largest total uranium reserve in the world and is the second-highest global uranium producer.
ML121 and EPL-7011 are neighbors to Namibia’s two uranium-producing mines, Rössing and Husab, the world’s fifth- and third-largest producing uranium mines, respectively. The uranium outlook is continuing to strengthen because it is a critical metal for energy transition and energy security.
Duane Parnham, Executive Chairman and CEO, Madison Metals Inc.
Duane Parnham adds, “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.”
ML121
ML121, which covers an area of about 35 km2 and is where the Charlie Drilling uranium occurrence is found, is situated 46 km east-northeast of Swakopmund. The mining license covers base and rare metals, industrial minerals, dimension stones, precious metals, and nuclear fuel minerals.
Since ML121’s geological and structural setting is strikingly similar to the Rössing deposit, with uranium-bearing granites centered at the Khan-Rössing boundary inside the north-northeasterly trending deformation corridor of the Welwitschia magnetic lineament, ML121 has a high potential for leucogranite-hosted uranium mineralization.
The most notable anomalies are associated with isoclinal fold noses at the intersection of the Khan and Rössing formations, according to historical aircraft radiometric surveys over ML121.
The radiometric anomaly in the northwest parts of ML121 has been the main focus of exploration work. Six (6) diamond drill holes and 59 reverse circulation drill holes were conducted on the 2.3 km long anomaly. Madison will review and independently verify the data to define a resource that complies with NI 43-101.
Madison is carrying out its due diligence and anticipates concluding the deal later this year, at which point more information will be available.