A leading Australian mining company, Pioneer Lithium, has signed a binding share sale agreement to acquire 100% of Rodon Metals Pty. Ltd., which holds the Warmbad Uranium Project in //Kharas.
The Warmbad Uranium Project spans 271 km² under Exclusive Prospecting Licence 8838.
Pioneer Lithium will pay an exclusivity fee of US$50,000 in cash paid within 7 days of execution and a completion fee of US$150,000 in cash upon completion of the acquisition.
Rodon Metals will receive 1,5 million fully paid ordinary Pioneer Lithium shares valued at 0.20 cents per share within three months of completion.
Pioneer Lithium will pay US$1.5 million in cash when it announces a JORC-compliant mineral resource estimate of at least 30 million pounds of uranium ore with a grade between 101 ppm and 199 ppm U₃O₈.
An additional US$1 million in cash will be paid on achieving a JORC-compliant mineral resource estimate of 30 million pounds of uranium ore with a minimum grade of 200 ppm U₃O₈ or greater.
Rodon Metals will receive a perpetual royalty of 2% of the net smelter return on all production from the Warmbad Project.
The acquisition is subject to receipt of required regulatory, statutory, and governmental consents and approvals.
The deal completion is expected to be in CYQ1 2025. The project’s vendor is Ropa Investments (Gibraltar) Limited, an unrelated company.
Historical exploration by Xemplar Energy Corp., including airborne radiometric surveys and drilling, has identified multiple high-priority targets with uranium mineralisation in granitic rocks.
The historic drilling programs completed between 2008 and 2009 by Xemplar Energy Corp. (161 RC drill holes totalling 28,744 metres and 12 diamond drill holes totalling 2,223 metres) confirmed uranium mineralisation within leucocratic granites in five key areas.
Pioneer Lithium has received firm bids to raise A$1.675 million through an equity placement at $0.20 per share to review historical data and advance exploration and development at the Warmbad Uranium Project and other projects.
Pioneer Lithium plans to unlock the Warmbad Uranium Project’s potential by obtaining and reviewing original historical exploration data from the Geological Survey of Namibia to inform exploration efforts.
The company will conduct modern magnetic and radiometric surveys at target and regional scales to refine geological models and identify new anomalies.
In addition, Pioneer Lithium will target new anomalies and untested paleochannels by focusing exploration efforts on untested radiometric anomalies, leveraging modern techniques to identify new zones of uranium mineralisation.
Pioneers Lithium executive chairperson Robert Martin said these strategic acquisitions represent a defining moment and propel the company into the high-growth uranium sector with two world-class projects in uranium-friendly jurisdiction in Namibia.
“The company intends to work through these data sets and historical records methodically to help define and delineate future work programs.
“As uranium takes centre stage in the shift to low-carbon energy solutions, these strategic additions enhance our portfolio, creating a pathway to substantial value creation in the critical minerals sector in 2025,” Martin said.
