Marenica and Deep Yellow enter into licence agreement
Marenica Energy has entered into a definitive and binding Technology Licence Agreement (TLA) with Deep Yellow, according to an announcement on the local stock exchange news platform.
Under the TLA, Marenica will provide its U-pgrade technology and expertise to Deep Yellow for use in the development of the Tumas Project south-east of Walvis Bay in return for a licence fee for the entire life of the project. Both parties sought to formalise the TLA after the successful test work programme were recently completed by Marenica on the Tumas ore.
“Marenica´s U-pgrade technology can potentially deliver such significant project and operating cost savings as to fundamentally impact the competitiveness of projects with suitable ores” the company said in the SENS statement.
Accordingly, under the TLA the two parties share the potentially considerable value created by combining the resource with the technology. The TLA represents a landmark agreement for Marenica.
Deep Yellow will have the ability to apply Marenica´s U-pgrade technology in return for a long-term licence fee which equates to around 25% of the estimated net present value of the Tumas project under a range of possible development scenarios.
“So long as the positive test results achieved to date continue, both parties are confident that the agreement has the potential to lower the uranium price hurdle for the Tumas project and bring development forward in the queue of projects waiting to be developed” according to the SENS.
Murray Hill, Marenica’s Managing Director, said, “We have long identified Deep Yellow´s Tumas project as a good fit for our first commercialisation agreement, based on the project´s high suitability for our technology, the project´s relatively advanced stage of development and the excellent cultural fit between the two companies”.
“Importantly, the project is located in Namibia, a jurisdiction that is highly supportive of the uranium mining industry and with operating uranium mines in close proximity that could take the U-pgrade concentrate,” he added.
Marenica´s chairman, Doug Buerger said, “We are truly excited by our first commercialisation agreement which gives your Management and Board confidence that our technology not only has a valuable application in the real world but that third party resource owners recognise this and are prepared to pay for the value it brings their projects”.