Marenica Energy Limited (ASX: MEY), a uranium and other mineral explorers in Australia, announced on 6th May 2019, that the company has received new uranium licenses in Namibia.
Securing of new licences is in line with the company’s strategy to acquire Surficial Uranium Deposits. As per the company’s announcement in March 2019, EPL 6987 (Koppies) was granted to the it by the Namibian Ministry of Mines and Energy. Now, the ministry has further granted four additional exclusive prospecting licences (EPLs) to the company. The EPLs include EPL 7278, 7279, 7368 and 7436, and all these combined licenses have now increased the company’s ground position in Namib area to 308km2.
As per the company, it can now commence the exploration planning and program on these licences, which marked an important step in the execution of its acquisition strategy. The tenements in Namibia accounts for low-cost exploration, as the nature of the drilling is shallow at the prospect, therefore, the company would be able to move ahead with the exploration work.
Marenica mentioned that, out of four EPLs, three are within proximity of the company’s Koppies tenement, which in turn, incorporates the eastern extensions of the Tumas palaeochannel. The company interprets that the additional EPLs along with three applied EPLs incorporates area that feeds into the Tumas palaeochannel system.
The Tumas palaeochannel hosts multiple uranium deposits, including the Tumas and Tubas deposits, which is currently owned by Deep Yellow Limited (ASX: DYL).
As per the company, it increased the ownership in Namib tenements to 100%, supported by the decision of the Government of Namibia, which removed the requirement of local ownership of EPLs. The Board members of the company acknowledged the positive decision on the ownership of EPLs taken by the Namibian Government.
As per the Managing Director of the company, Mr Murray Hill, the new licences mark an essential step for the execution of the company’s strategy in Namibia, and it also compliments the grant of Koppies EPL, which the company received last month. Mr Hill also expressed his pleasure over the increased ownership of the company at Namib EPL to 100%.
Company’s Shares’ Performance
The share price of the company embarked an upside from the level of A$0.072 (Day’s low on 18th January 2019) to the level of A$0.125 (Day’s high on 9th April 2019). However, the prices moved downwards from the recent high of A$0.125 in the past two weeks and made a low of A$0.099 (Day’s low on 6th May). The stock of the company, last traded at A$0.100 (as on 6th May 2019), down by 4.762% as compared to its previous close.
The return metrics are in line with the past and current price actions. The share of the company delivered a rate of return of -16% over the tenure of 1 month. However, the YTD rate of return stands at 31.25%.
The six months return on the share stands at 43.84% as compared to a return of -4.55% of yearly basis, which in turn, marks a significant recovery in share prices of the company in the past six months.
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