In November 2016, Deep Yellow signed a joint venture agreement with JOGMEC (a Japanese Government Agency), covering exploration and development at the Nova Project. JOGMEC completed its earn-in of A$4.5M over 4 years to earn a right to a 39.5% interest in Nova.
The joint venture includes two EPLs prospective for both basement and palaeochannel-type uranium mineralisation.
The joint venture is applying innovative geophysical and geochemical exploration methods and systematic drilling to the discovery of buried mineralisation. Previously unknown, but sub-economic, mineralisation has so far been discovered at the Namaqua palaeochannel, and the Iguana and Barking Gecko basement prospects. The Iguana prospect is of a type that is dissimilar to the Rössing and Husab basement deposits, as uranium is concentrated in unusual black quartz veins, while the Barking Gecko prospect is similar to those deposits.
Nova Joint Venture Equity Interests
Equity interest currently 65%, however JOGMEC currently hold a right-to-equity of 39.5% which, if exercised, would adjust the JV Parties’ interests. Whilst JOGMEC has not yet exercised its option, the JV parties are contributing in those proportions as though the interest had been exercised as indicated below:
|Reptile Mineral Resources and Exploration (Pty) Ltd||39.5%|
|Japan Oil, Gas and Metals National Corporation (JOGMEC)||39.5%|
|Nova Energy (Africa) Pty Ltd (Subsidiary of Toro Energy Ltd)||15%|
|Sixzone Investments (Pty) Ltd||6%|