Deep Yellow pulls out drilling rigs
Uranium explorer, Deep Yellow says it will significantly reduce its overhead and exploration spend by downsizing the number of drilling rigs deployed in its operations from the current seven to two and its staff count accordingly.
Deep Yellow (DYL) is currently involved in exploration activities in the country through its wholly-owned local subsidiary, Reptile Uranium Namibia at its flagship Omahola project, at the Tubas Sand Project and at the Shiyela Iron Project.
The company said the decision to downsize operations has been taken amid ongoing volatility in the world’s financial markets and uncertainty in the uranium sector.
“We have therefore prioritised what we need to do in the coming year to not only protect but also add value to our assets to ensure that DYL will, one year hence, be in a strong position to capture opportunities on the back of an anticipated improvement in the markets.”
Deep Yellow says the initiatives will allow the company to focus and concentrate its efforts and resources on the rapid progression of its key, highly promising projects in the country.
As a result, the uranium explorer will divest its portfolio of early stage exploration assets in Australia. The Australian portfolio consists of projects located in both Queensland (where uranium mining is not yet allowed) and the Northern Territory.
It is anticipated that the divestment process will be completed in the second half of this calendar year.
Deep Yellow is also engaged in discussions with Rio Tinto Mining and Exploration Limited over the three Nova Energy Exclusive Prospecting Licences (EPLs). Nova is the legal and beneficial owner of the EPLs . Nova is 65% owned by local subsidiary Reptile Mineral Resources and Exploration.
If the agreement is concluded with Rio Tinto, they shall have the right to earn a share in the EPLs by fulfilling certain work and expenditure obligations.
Deep Yellow also announced that divestment in the Shiyela Iron Project is a priority as it believes that the project presents a potential opportunity to source non-dilutionary funding for the company.
RMB Namibia has been appointed to divest the project. The divestment is expected at the end of this year.