Deep Yellow has brought in Core Energy Minerals to spend A$5 million exploring its Nova uranium joint venture in Namibia, effectively replacing former Japanese partner JOGMEC and giving Core Energy a path to a controlling 51% interest in about 600 square kilometres of exploration ground west and south-west of the Langer Heinrich uranium mine.
JOGMEC previously spent A$4.5 million to earn 39.5% of Nova but eventually withdrew after the partners reassessed the project following further drilling. Its exit restored Deep Yellow’s interest to 65%, and the company subsequently began looking for another party to fund exploration of the licences it now regards as non-core.
Under the new two-phase agreement, Core Energy will take over management of the Nova Joint Venture during the earn-in and fund all exploration expenditure and operations, while Deep Yellow and the other existing shareholders will be free-carried until Core Energy has met its expenditure commitments.
The transaction also expands Core Energy’s existing uranium footprint in Namibia, where the ASX-listed explorer already has the Gemsbok and Oryx projects in the Erongo Region.
Nova Energy (Namibia) holds EPL 3669 and EPL 3670, which together cover approximately 600 square kilometres. Deep Yellow is concentrating its Namibian development efforts on its more advanced Tumas uranium project.
A$5m for majority stake
Deep Yellow currently controls Nova through its wholly owned subsidiary Reptile Mineral Resources and Exploration (RMR), which holds a 65% interest and manages the joint venture.
Nova Energy (Africa), a subsidiary of former ASX-listed Toro Energy, holds 25%, while Namibian company Sixzone Investments owns the remaining 10%.
Core Energy can earn an initial 25% interest by spending A$2 million within 18 months from the start of the earn-in.
Completion of the first phase would leave Core Energy with 25%, RMR with 48.75%, Nova Africa with 18.75% and Sixzone with 7.5%.
Core Energy can then earn a further 26% by spending another A$3 million within 24 months from the end of Phase 1.
If both phases are completed, Core Energy will hold 51%, while Deep Yellow’s RMR interest will fall to 31.85%, Nova Africa will hold 12.25% and Sixzone 4.9%.
The A$5 million represents exploration expenditure that Core Energy must fund to earn its interest rather than a cash payment to Deep Yellow.
Core Energy takes over exploration
Core Energy will replace RMR as manager of Nova during the earn-in and fund all exploration expenditure and operations during the period.
The existing shareholders will be free-carried while Core Energy completes its expenditure commitments. Once those commitments are satisfied, the other parties will be required to contribute to future expenditure according to their respective interests.
Sixzone will remain carried, with its share of expenditure to be repaid from future dividends.
The arrangement allows Deep Yellow to retain exposure to any future exploration success at Nova without funding the next A$5 million of work itself.
Core Energy expands Erongo footprint
The deal does not mark Core Energy’s entry into Namibia.
The company already has interests in the Gemsbok and Oryx uranium projects in Erongo. Gemsbok, EPL 9725, lies close to Bannerman Energy’s Etango uranium project, while Oryx, EPL 9652, is located near Deep Yellow’s Tumas project.
Core Energy was previously known as OAR Resources before changing its name in December 2024 as it repositioned towards uranium and other critical minerals. Its wider exploration portfolio also includes assets in Australia and Brazil.
The Nova transaction therefore adds another sizeable exploration position to Core Energy’s existing Namibian uranium portfolio, this time close to the operating Langer Heinrich uranium mine.
JOGMEC spent A$4.5m before withdrawing
Core Energy is not the first outside partner brought in to fund exploration at Nova.
Japan’s government-backed Japan Organisation for Metals and Energy Security, JOGMEC, previously entered an earn-in arrangement under which it spent A$4.5 million and earned a 39.5% interest in the joint venture.
JOGMEC completed the earn-in in September 2020, leaving it and Deep Yellow’s RMR each holding 39.5%, while Nova Africa held 15% and Sixzone 6%.
The JOGMEC-funded exploration programme produced results. Work identified previously unknown uranium mineralisation at the Namaqua palaeochannel and the Iguana and Barking Gecko basement prospects.
Barking Gecko produced some of the stronger drilling results, including a 2021 programme in which uranium mineralisation was intersected in 13 of 14 holes. One hole returned four intersections totalling 70 metres at 503ppm eU3O8 across an 83-metre zone.
However, subsequent exploration did not provide sufficient encouragement for the Japanese partner to remain in the venture.
Following an assessment of an RC drilling programme completed in December 2023, the joint venture partners concluded that only limited follow-up work was warranted at Barking Gecko on EPL 3669. JOGMEC advised during the June 2024 quarter that it intended to withdraw.
A formal withdrawal agreement was executed on 28 May 2025, and JOGMEC’s shares in the venture were subsequently cancelled, with the process completed on 22 August 2025.
Its departure restored the ownership structure to RMR with 65%, Nova Africa with 25% and Sixzone with 10%.
Deep Yellow and the other active contributing partner then agreed to consider bringing another party into Nova, setting the stage for the new Core Energy agreement.
Core Energy is therefore effectively taking the place previously occupied by JOGMEC as the outside party funding another exploration push, although the terms are different. JOGMEC spent A$4.5 million for 39.5%, while Core Energy can spend A$5 million to acquire a controlling 51%.
Deep Yellow focuses on Tumas
Deep Yellow’s decision to bring in another exploration partner comes as it directs its development capital towards Tumas, its flagship Namibian uranium project.
Tumas holds a 20-year mining licence and is one of two advanced projects underpinning Deep Yellow’s growth strategy, alongside Mulga Rock in Western Australia. The company is targeting a longer-term production profile exceeding 10 million pounds of uranium annually across its portfolio.
Its exploration portfolio also includes Omahola in Namibia and Alligator River in Australia’s Northern Territory.
At Nova, the immediate next step is Core Energy’s A$2 million Phase 1 exploration programme. It has 18 months to meet that expenditure requirement and earn its initial 25% interest, after which it can proceed with the additional A$3 million programme required to increase its stake to 51%.
