Southstone Diversifies with Botswana Uranium Acquisition

Deal News | Feb 18, 2025 | Globenewswire

Southstone Diversifies with Botswana Uranium Acquisition

Southstone Minerals Limited has announced a strategic acquisition of Afrium Energy Pte. Ltd. to diversify its portfolio by obtaining uranium prospecting licenses in Botswana, along with plans for an equity financing initiative. The acquisition is intended to align with Southstone's long-term growth strategies, allowing the company to enhance shareholder value while reducing reliance on its diamond operations and geographic diversification. The transaction, which involves the issuance of 20 million common shares to Afrium shareholders, and a concurrent equity financing with a minimum of C$1.5 million in net proceeds, is slated for completion by July 2025, pending regulatory approval. Most of the financing proceeds will sustain Southstone's existing diamond mining operations at Oena. The acquired Lekobolo uranium licenses show potential for expansion and could position Southstone to capitalize on the growing uranium market amid global demand for nuclear energy.

Sectors

  • Mining
  • Energy

Geography

  • Botswana – Botswana is a key geographical focus due to the acquisition of uranium prospecting licenses located in this jurisdiction.
  • Canada – As Southstone Minerals is a company based in Victoria, British Columbia, this geography is pertinent to the company's operations and regulatory considerations.
  • Singapore – Afrium Energy Pte. Ltd., the company being acquired, is based in Singapore.

Industry

  • Mining – The primary industry involved as Southstone Minerals diversifies its mining operations by acquiring uranium assets in Botswana while advancing its diamond mining operations.
  • Energy – The acquisition of uranium prospecting rights positions Southstone within the energy sector, particularly nuclear energy, reflecting growing global demand for uranium.

Financials

  • C$1.5 Million – Minimum gross proceeds to be raised from the Concurrent Equity Financing.
  • C$2.25 Million – Maximum gross proceeds to be raised from the Concurrent Equity Financing.
  • 20,000,000 shares – Southstone shares issued as consideration to Afrium shareholders in the acquisition.
  • 2.5% NSR – Net smelter return royalty granted to Afrium shareholders on the uranium licenses.
  • C$7.5 Million – Maximum aggregate amount for repurchasing NSR by Southstone.

Participants

NameRoleTypeDescription
Southstone Minerals LimitedBidding Company/AcquirerCompanySouthstone is acquiring Afrium Energy Pte. Ltd. to diversify its portfolio with mineral assets in Botswana.
Afrium Energy Pte. Ltd.Target CompanyCompanyA private Singapore corporation, holder of uranium prospecting licenses in Botswana, being acquired by Southstone.
Afrium Energy Botswana (Pty) Ltd.SubsidiaryCompanySubsidiary of Afrium Energy, holds uranium prospecting licenses in Botswana.
Copper Falcon Botswana (Pty) Ltd.SubsidiaryCompanyAnother subsidiary of Afrium Energy, also holding uranium licenses in Botswana.
James WardFinderPersonAn arms-length third party set to receive a finder's fee in the form of common shares from Southstone.
Terry L. TuckerExecutive ChairmanPersonExecutive Chairman of Southstone and providing public statements about the transactions.
Julien BalkanyChairmanPersonChairman of Afrium and expected to hold over 10% of Southstone's shares post-acquisition.
Marc SengsCEOPersonCurrent CEO of Afrium, to be appointed CEO of Southstone post-transaction.
The MSA Group (Pty) Ltd.ConsultantCompanyProvided the NI 43-101 Technical Report, essential for the exploration program in the acquired uranium project.