African Discovery Group (“AFDG”) signs LOI to acquire Ouricha-3 Uranium exploration license in Niger (the “Transaction”)

Niger’s Tim Mersoi Basin is among the largest uranium provinces in the world. Historic and current uranium production ranks among the top ten uranium producing countries in 2024. Ouricha-3 (494 km2) is located 35 km northwest of DASA, Africa’s highest grade uranium deposit and 20 km south of Imouraren, one of world’s largest uranium reserves.

NIAMEY, Nijer, July 8, 2024 /PRNewswire/ — African Discovery Group (AFDG) has signed a letter of intent to acquire the license of Central Global Access International Niger, a Niger based company in a stock-based transaction creating a Uranium exploration company, with a focus on creating value around Africa’s under explored basins of Uranium. After close of the transaction, AFDG will dedicate itself to uranium exploration going forward on the African continent. By working in concert with the government of Niger, African Uranium will create local skills to develop the highly promising nuclear industry on the continent. In 2022, Africa produced approximately 16% of world uranium production according to the World Nuclear Association (WNA).

Transaction details

As part of the Transaction, AFDG is expected to issue shares to the permit holder and existing operating team. The transaction is expected to result in the existing AFDG shareholders retaining the majority ownership of the company. The government of the Republic of Niger is expected to retain a working interest in the operations of the Niger license after cost recovery. The Transaction is expected to close in 4Q2024, subject to shareholder approval, customary due diligence and documentation. It is expected that the company will change its name to African Uranium in conjunction with the closing. In conjunction with the closing AFDG intends to hire a Chief Executive Officer with extensive geological experience in uranium exploration in West Africa, with the existing exploration team expected to retain their current roles. Click here to continue reading full article: https://docs.google.com/document/d/1w2YYTKihQzbz5lLzgu8qgkcWSjnIzi_u/edit?usp=sharing&ouid=114985394262451163794&rtpof=true&sd=true

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SOURCE African Food Security LLC