CSE-listed Madison Metals entered into an agreement on September 12 to acquire a 23% interest in mining licence (ML) 121 in Namibia through the acquisition of a 24% ownership interest in Namibia Nuclear Corporation by way of a share purchase agreement.

The 24% interest was bought for a combination of $2-million cash and two-million common shares in the capital of Madison Metals, to be paid and issued on the closing date.

ML 121 is located in the renowned Erongo uranium province of Namibia, where Madison already holds rights to exclusive prospecting licence (EPL) 7011.

Namibia is the world’s second-highest uranium-producing country and holds the fifth-largest total uranium resources globally.

ML 121 and EPL 7011 are neighbours to Namibia’s two uranium-producing mines, Rössing and Husab, the world’s fifth- and third-largest producing uranium mines, respectively.

“The uranium outlook is continuing to strengthen because it is a critical metal for energy transition and energy security. Madison’s strategy of acquiring highly prospective concessions in a tier-one uranium jurisdiction provides the company with an opportunity to establish itself as a key player in the uranium industry,” executive chairperson and CEO Duane Parnham says.

ML 121, which contains the Charlie Drilling uranium occurrence, is located 46 km east-northeast of the city of Swakopmund, spanning an area of about 35 km². The mining licence covers base and rare metals, dimension stone, industrial minerals, nuclear fuel minerals and precious metals. 

Parnham says ML 121 has significant potential for leucogranite-hosted uranium mineralisation, given that its geological and structural setting bears a strong resemblance to the Rössing deposit, with uranium-bearing granites concentrated at the Khan-Rössing boundary within the north-northeasterly-trending deformation corridor of the Welwitschia magnetic lineament.

Historical airborne radiometric surveys over ML 121 have indicated anomalous prospective radiometric signatures, with the most noteworthy anomalies being related to isoclinal fold noses at the contact of the Khan and Rössing formations.

Exploration so far has focused on the radiometric anomaly in the northwest portions of ML 121. The 2.3-km-long anomaly was followed up with six diamond drill holes and 59 reverse circulation drill holes. Madison will undertake an independent review and verification of the data to define a National Instrument 43-101-compliant resource.

Madison is conducting due diligence and expects to complete the transaction later this year.