Deep Yellow will unload iron ore set as uranium hits its straps


With the spot price of uranium approaching US $ 50 a pound, Deep Yellow entered into a 12-month option purchase agreement with HyIron Green Technologies to sell its Shiyela iron ore project. The move will allow Deep Yellow to focus on its rapidly developing Namibian uranium project. HyIron Green Technologies has 12 months to evaluate and tender for the purchase of the Shiyela iron ore project.

ASX-listed Deep Yellow and Oponona Investments hold 95% and 5% of the shares of Shiyela Iron Limited, respectively.

Deep Yellow holds its shares through the subsidiary Reptile Uranium Namibia.

HyIron is a Namibian registered company associated with German technology leader CO2Grab GmbH. HyIron aims to use its proprietary technology, along with renewable energy, to produce high quality “green cast iron” for use by boutique steelmakers in Germany.

Reptile and Oponona have entered into an exclusive agreement with HyIron that will allow HyIron to undertake general due diligence and several benchmark studies on wind, water and solar energy, as well as 12-month geotechnical tests on the Shiyela iron ore project.

At the end of the exclusivity period, HyIron will have the right to acquire all the shares of Shiyela Iron Ltd for an amount between $ 3-5 million, depending on the price of 62% of the iron ore at the era.

The management of Deep Yellow said that if the Fe62 fine price trades below $ 100 per ton, the purchase price will be $ 3 million and if it exceeds $ 250 per ton, the price will drop to $ 5 million. USD. If the price of Fe62 fines falls between these numbers, the purchase price will be adjusted accordingly. The price of iron ore was hit in August this year and has remained somewhat sluggish since due to weaker demand from China.

Deep Yellow discovered the magnetite-rich iron mineralization of Shiyela in 2008 and announced a first inferred resource of 115.1 million tonnes grading 19.5% iron in 2012. Initial scoping studies conducted by the company predicted a open-cast mining extracting 7.7 million tonnes per year. of run-of-the-mill ore to produce 2 million tonnes per year of 68 percent iron high-grade magnetite and hematite concentrate with a low silica content of about 4.5 percent and low levels of impurities such as sulfur, phosphorus and alumina.

Despite the positive economic outlook presented in the Shiyela iron ore project, the uranium heavyweight and Deep Yellow CEO John Borshoff have decided to take a part in the uranium market’s comeback and the company has focused on its nearby Tumas uranium project in Namibia – a move that is starting to sound prophetic with uranium now hitting its suspenders.

According to the World Nuclear Association, nuclear energy will play an important role in decarbonizing the world.

Over 80% of primary energy consumption currently comes from carbon combustion, a figure that has not changed since the 1990s.

The Intergovernmental Panel on Climate Change has said more than 80% of the world’s electricity will need to be “low carbon” if global warming is to be kept below the 2 ℃ target. the Paris Agreement, set by the UNFCCC in 2018.

Deep Yellow is strategically at the forefront of the upsurge in uranium sentiment and recently announced an estimate of improved reserves for the Tumas project totaling 89.8 million tonnes at 345 parts per million uranium for 68.4 million pounds of uranium for the combined Tumas 1, Tumas 2, Tumas 3 and Tumas 1 Est. The updating of reserves marked a key milestone for the company in the initial mine life of the project which now exceeds 20 years.

Is Your ASX Listed Company Doing Something Interesting? Contact: [email protected]

Source link

Leave A Reply

Your email address will not be published.