Neo Energy Metals has secured a strategic investment worth up to £8 million to advance its Beisa Uranium and Gold Project towards production.
The London-listed mining company’s shares rose after announcing it had received an initial £1.5 million from a UK-based investment group through the placement of 166.7 million new shares at 0.9 pence per share, representing a 16.1% premium to the previous closing price.
A further £1 million was raised through an additional placing of 111.1 million shares at the same price.
The strategic investor has committed to provide an additional £6.5 million in convertible loan funding within 10 days of Neo Energy receiving South African regulatory approval for its acquisition of the Beisa Mine from NYSE-listed Sibanye-Stillwater.
This second tranche will be priced at a 10% discount to the 10-day volume-weighted average price and will carry a 5% coupon.
Under the agreement, the strategic investor will be entitled to nominate one non-executive director and one board observer, subject to maintaining a minimum 5% shareholding.
The proceeds from the placing will fund the company’s four-phase implementation assessment programme, which includes site re-establishment, shaft refurbishment, workforce recruitment, and processing plant recommissioning. Completion of the Beisa Mine acquisition is anticipated in the first quarter of 2026.
The Beisa Mine, located in South Africa’s Free State Province, holds SAMREC-compliant measured and indicated resources of 1.2 million ounces of gold and 26.9 million pounds of uranium.
The mine produced uranium and gold for over 30 years before being placed into care and maintenance in late 2023.
Neo Energy also confirmed that it has agreed to repay £1.176 million to debt providers by issuing 130.7 million ordinary shares at the same price.
CMC Markets UK Plc, trading as CapX, acted as the sole placing agent for the transaction.