Deep Yellow has secured long-term water supply for its Tumas uranium project and finalised an agreement giving Namibian company Oponona Investments a 5% stake in the project company, clearing two critical requirements as it works towards a final investment decision in the fourth quarter of 2026.
The agreements come as physical work at Tumas gathers pace, with bulk earthworks completed and major civil and concrete construction underway following the award of about A$34 million in contracts to two Namibian contractors.
Deep Yellow said its wholly owned subsidiary, Reptile Uranium Namibia (RUN), has signed a long-term Water Supply Agreement with the Namibia Water Corporation (NamWater), securing water for construction, commissioning and eventual uranium production.
The agreement provides dedicated water supply capacity over the life of Tumas and establishes the commercial framework covering water delivery, quality, capacity and long-term services.
Financial terms were not disclosed, with Deep Yellow saying they are commercially confidential but consistent with industry standards.
Securing water removes one of the project’s major infrastructure requirements as Deep Yellow prepares for a final investment decision (FID), which remains targeted for the fourth quarter of this year, subject to market conditions.
At the same time, Deep Yellow has formalised local ownership arrangements under which Oponona Investments will become a 5% shareholder in RUN.
Deep Yellow subsidiaries Reptile Mineral Resources and Exploration (RMR) and RUN have signed Subscription and Shareholders Agreements with Oponona, implementing an arrangement contemplated under a previously disclosed binding Heads of Agreement.
RUN holds Mining Licence 237 and Exclusive Prospecting Licences 3496 and 3497, which make up the Tumas Project, as well as various Namibian exploration interests, including the Tinkas and S-Bend prospects near Tumas and the standalone Omahola Project.
Deep Yellow said the transaction supports compliance with local ownership requirements attached to ML237.
Oponona will not be required to fund its 5% share of historical and future Tumas expenditure upfront.
Under the Shareholders Agreement, Oponona’s share of historical project expenditure and future construction and development costs up to commercial production will be treated as an interest-free loan from RMR.
Oponona will repay the loan from future project dividends.
The arrangement also includes a community component, requiring Oponona to establish a dedicated Special Purpose Entity (SPE) to invest in local communities.
The SPE will be beneficially entitled to 40% of Oponona’s future dividends, with the proceeds earmarked for community initiatives in and around Tumas.
The allotment and issue of shares giving Oponona its 5% interest in RUN is expected to be completed within seven days, after which the Shareholders Agreement will take effect.
The agreements add to work already underway at Tumas despite Deep Yellow not yet having taken the final investment decision to develop the mine.
Bulk earthworks have been completed, while major civil and concrete construction activities have commenced following the recent award of approximately A$34 million in work to two Namibian contracting partners.
Deep Yellow said the civil and concrete programme has established several simultaneous work fronts, giving the company greater flexibility and reducing potential schedule risks.
Detailed engineering, procurement, project optimisation and financing are also progressing, alongside remaining infrastructure and commercial arrangements required before the company makes its investment decision.
Deep Yellow managing director and chief executive Greg Field said the latest agreements were part of the company’s strategy of resolving major project risks before committing shareholder capital to full development.
“This is another great outcome for Deep Yellow. We have closed out two important workstreams and continue to build momentum as we systematically prepare Tumas for development.
“Our approach has been clear and consistent – remove uncertainty wherever we reasonably can and build execution certainty before committing shareholder capital at FID. That is what we said we would do, and it is what we are delivering.
“Securing long-term water provides certainty over one of Tumas’ most critical operating requirements while the Oponona agreements give effect to local ownership arrangements contemplated under a binding Heads of Agreement previously disclosed by Deep Yellow.
“These milestones build on completed bulk earthworks, major civil and concrete works now underway, and continued progress across engineering, procurement, optimisation and financing.
“Tumas is becoming progressively more de-risked and construction-ready. We have real momentum and will continue systematically closing out the remaining workstreams as we build the strongest possible platform for a disciplined investment decision.”
