DMC expands into Guinea with uranium and rare earth projects

The deal will allow the company to expand its presence in uranium, rare earth elements (REEs) and niobium. Credit: RHJPhtotos/Shutterstock.

DMC Mining has announced the acquisition of two projects in Guinea, marking a strategic expansion into uranium, REEs and niobium.

The company has entered binding agreements to acquire the Firawa Uranium-Rare Earth Element-Niobium Project from Veridis and the Labé Uranium Project from Mining Development.

This move requires DMC to re-comply with the initial chapters of the Australian Securities Exchange (ASX) listing rules due to the broadening of its exploration portfolio.

The acquisitions will be primarily settled through the issuance of DMC shares to the vendors, aligning their interests with the success of the projects.

For the Firawa Project, DMC will pay Veridis a $90,000 (A$135,107) exclusivity fee and issue 35 million shares valued at $1.75m upon completion.

Additionally, 130 million performance rights will be granted to Veridis, which will convert to shares upon achieving specific milestones.

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The terms for the Labé Project include issuing 15 million shares to Mining Development, valued at $750,000.

Furthermore, DMC has agreed to compensate Veridis with a monthly consultancy fee of $25,000 for four months starting January 2024, covering the services provided before the completion of the acquisition and reimbursement for expenses.

DMC executive chairman David Sumich said: “The proposed Firawa Uranium-REE Project acquisition fits well into our critical minerals development strategy.

“As well as having a Mineral Resource Estimate reported in accordance with the JORC (2012) code, including over 12,000m of historic drilling, we are acquiring an oxide project that contains nearly 200 high-grade rare earth intersections.

“The significant exploration programme already completed allows us to hit the ground running. The Labé Project will complement our exploration of the Firawa Project and will be an additional asset to our growing portfolio of uranium-based assets.”