OAR
Oar Resources Limited
ASX
OAR Expands Into World Class Uranium Mining Region
Sentiment:
Exploration Update
2 April 2024 6:55 PM
Oar Resources (OAR) is expanding its portfolio by acquiring uranium-prospective licenses in Namibia and pegging ground for rare earth elements (REE) and uranium in Brazil.
Capital raise
OAR will issue 100,000,000 fully paid ordinary shares (Tranche 1 and Tranche 2 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL) subject to confirmation in writing that EPL 9652 and EPL 9725 have both been granted.
On the 12-month anniversary of EPL 9652 or EPL 9725 being granted, OAR will issue an aggregate of 100,000,000 fully paid OAR ordinary shares (Tranche 3 and Tranche 4 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL).
Within four (4) years of EPL 9652 or EPL 9725 being granted, should OAR announce a JORC compliant uranium resource of 50M pounds at 100ppm or greater on each EPL, OAR will issue the Vendors 50,000,000 OAR ordinary shares for each EPL (Tranche 5 and Tranche 6 Deferred Consideration Shares).
Summary
- Oar Resources (OAR) has signed a binding agreement to acquire 100% interest in two Exclusive Prospecting Licences (EPLs) in the Erongo Region of Namibia, an area known for its uranium deposits.
- The EPLs, EPL 9652 and EPL 9725, are currently in the application phase and are expected to be granted in Q2 2024.
- OAR has also pegged approximately 230km2 of prospective ground for Rare Earth Elements (REE) and uranium in Paraiba and Parana, Brazil.
- The company plans to develop in-country exploration teams in both Namibia and Brazil to expedite exploration activities.
- The Namibian EPLs are located near the Tumas Project (Deep Yellow Limited) and the Etango Project (Bannerman Energy Ltd), which are along strike from the Husab, Rossing, Valencia and Norasa deposits.
- EPL 9725 covers 38.62km2 and shares a border with Bannerman Energy's Etango Project, which has a Mineral Resource of 207 million pounds of contained uranium.
- EPL 9652 covers 189.69km2 and shares a border with Deep Yellow Limited's Tumas Project, which has a Total Indicated Mineral Resource of 108.5 million pounds at 265ppm uranium.
- OAR will pay CAD$125,000 cash and issue shares to acquire the Namibian EPLs, subject to certain milestones and shareholder approval.
- The vendors will also receive a 2% net smelter royalty on minerals extracted from the EPLs.
- OAR has commenced early-stage geological mapping and reconnaissance at the Sao Jose Uranium and REE Project in Brazil.
Sentiment
Score: 7
Explanation: The announcement is positive as it details strategic acquisitions and expansion into promising regions for uranium and REE exploration. However, the projects are in early stages and subject to regulatory approvals and exploration success.
Positives
- The acquisition of EPLs in Namibia provides OAR with exposure to a world-class uranium mining region.
- The EPLs are located near existing uranium projects, increasing the likelihood of successful exploration.
- The pegging of ground in Brazil diversifies OAR's portfolio into Rare Earth Elements (REE) and uranium.
- The company is developing in-country exploration teams to expedite exploration activities.
- The company is strategically diversifying its portfolio as part of its exploration strategy.
Risks
- The EPLs are currently in the application phase and may not be granted.
- Exploration activities are subject to obtaining an Environmental Clearance Certificate and lodging an Environmental Impact Assessment (EIA).
- The company needs to obtain shareholder approval for the issue of securities related to the Namibian acquisition.
- The agreement is subject to completion of due diligence by OAR.
Future Outlook
OAR intends to conduct fieldwork on the EPLs in Namibia, leading to a maiden permitted drilling program, and will continue to assess additional areas within Brazil for high-quality projects.
Management Comments
- We are strategically diversifying our portfolio as part of the Company's exploration strategy, with these tenements marking a great opportunity to develop uranium focused exploration in tier one destinations.
- The acquisition in Namibia is significant, with both EPLs located close to a well-known uranium-enriched structural corridor and considered prospective for multiple styles of uranium mineralisation.
Industry Context
The announcement reflects a growing interest in uranium exploration and development, driven by increasing demand for nuclear energy and the transition to green energy. OAR's move aligns with the trend of companies seeking to secure uranium resources in stable and mining-friendly jurisdictions like Namibia.
Comparison to Industry Standards
- The Namibian EPLs are located near Bannerman Energy's Etango Project, which has a Mineral Resource of 207 million pounds of contained uranium, indicating the potential scale of uranium deposits in the region.
- The Namibian EPLs are located near Deep Yellow Limited's Tumas Project, which has a Total Indicated Mineral Resource of 108.5 million pounds at 265ppm uranium, with a potential mine life of more than 30 years.
Stakeholder Impact
- Shareholders: Potential for increased asset value and future growth through successful exploration and development.
- Employees: Opportunity for new roles and career development within the company's exploration teams.
- Customers: No immediate impact, but potential for future supply of uranium and REE.
- Suppliers: Potential for increased business opportunities related to exploration and development activities.
- Creditors: No immediate impact.
Next Steps
- Complete due diligence on the Namibian EPLs.
- Obtain grant of the Namibian EPLs.
- Obtain an Environmental Clearance Certificate and lodge an Environmental Impact Assessment (EIA) for the Namibian EPLs.
- Conduct fieldwork on the Namibian EPLs.
- Generate a maiden permitted drilling program for the Namibian EPLs.
- Continue geological mapping and reconnaissance at the Sao Jose Uranium and REE Project in Brazil.
- Commence exploration activity at the Tunas REE Project in Brazil.
- Seek shareholder approval for the issue of securities related to the Namibian acquisition.
Key Dates
- September 2023: EPLs were applied for in Namibia.
- December 2023: Bannerman Energy's Etango Project was granted a Mining Licence.
- April 3, 2024: Date of the ASX announcement.
- Q2 2024: OAR expects both EPLs to be granted.
Keywords
OAR
Oar Resources Limited
ASX
Sector: Materials
Filings with Classifications
Delay expected
28 November 2024 11:46 PM
Shareholder Update
- Trading of the company's securities will be on a deferred settlement basis from December 3, 2024 to December 11, 2024, delaying the full implementation of the name and ticker change.
Capital raise
28 November 2024 11:35 PM
Annual General Meeting Results
- Resolution 15 approved the issuance of future capital raising shares.
Capital raise
29 October 2024 10:00 PM
Annual General Meeting Notice
- The company is seeking shareholder approval to issue up to 500,000,000 shares (pre-consolidation) in a future capital raising.
- The issue price will be no less than 80% of the 5-day VWAP at the time of issue.
- The funds raised are intended for debt repayment, working capital, project development, acquisition costs, and potential new acquisitions.
Capital raise
28 October 2024 5:53 PM
Investor Presentation
- The company has limited cash on hand and may need to raise additional capital to fund its exploration activities.
Delay expected
8 August 2024 4:47 AM
Options Prospectus
- The company experienced delays in issuing the CN Options and Broker Options, which led to an extension of the expiry date to June 30, 2027.
Capital raise
31 July 2024 2:06 AM
Quarterly Report
- OAR successfully raised $1 million through a share placement.
- The company may need to raise additional capital in the future to fund its exploration activities.
Capital raise
31 July 2024 12:16 AM
Results of General Meeting
- Resolution 8 indicates approval to issue shares under Listing Rule 7.1, suggesting a potential future capital raise.
Capital raise
27 June 2024 11:21 PM
Notice of General Meeting
- Resolution 1 seeks Shareholder ratification pursuant to Listing Rule 7.4 for the issue of the Capital Raising Securities.
- The Company is proposing to issue up to 500,000,000 Shares at an issue price of no less than 80% of the 5-day VWAP at the time of issue per Share (Future Issue Shares) to professional and sophisticated investors who are unrelated parties of the Company (Future Capital Raising).
Capital raise
30 April 2024 2:44 AM
Quarterly Report
- The company successfully raised AUD $1 million through a share placement.
- The funds will be used to support environmental studies for uranium EPLs in Namibia and to grow the company's global portfolio.
- The company may need to raise additional capital in the future to fund its operations, given its low cash reserves.
Capital raise
2 April 2024 7:18 PM
Trading Halt Request
- Oar Resources is undertaking a capital raising managed by CPS Capital Group Pty Ltd.
- The details of the capital raising will be announced after the trading halt is lifted.
Capital raise
2 April 2024 6:55 PM
Exploration Update
- OAR will issue 100,000,000 fully paid ordinary shares (Tranche 1 and Tranche 2 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL) subject to confirmation in writing that EPL 9652 and EPL 9725 have both been granted.
- On the 12-month anniversary of EPL 9652 or EPL 9725 being granted, OAR will issue an aggregate of 100,000,000 fully paid OAR ordinary shares (Tranche 3 and Tranche 4 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL).
- Within four (4) years of EPL 9652 or EPL 9725 being granted, should OAR announce a JORC compliant uranium resource of 50M pounds at 100ppm or greater on each EPL, OAR will issue the Vendors 50,000,000 OAR ordinary shares for each EPL (Tranche 5 and Tranche 6 Deferred Consideration Shares).
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