LONDON, UK: Stranger Holdings Plc (LSE: STHP), a company focused on acquiring and developing natural resource projects, has announced that it has secured committed equity funding of £3.5 million from Q Global Commodities Group (‘QGC’), one of South Africa’s leading independent commodity, mining, logistics and investment funds.
The funding will enable Stranger Holdings to complete the reverse-take-over (‘RTO’) of Mayflower Energy Metals Ltd (‘MEML’) and its acquisition of the advanced Henkries Uranium Project (‘Henkries’ or ‘the Project’) located in the Northern Cape in South Africa.
Henkries is a high-grade and advanced uranium project with a JORC compliant resource of 36.9 million pounds of U3O8 at an average grade of 0.035%. The project has a positive feasibility study completed by Anglo American in 2009 and is ready for development.
The RTO transaction and the acquisition of Henkries will transform Stranger Holdings into a leading uranium exploration and development company in Africa, with a clear path to production and cash flow. The company will be renamed Neo Energy Metals (ticker: NEO) and will seek re-admission to the London Stock Exchange in early Q3 2023.
Q Global Commodities Group (QGC), through Dubai based AUO Commercial Brokerage LLC (‘AUO’), has executed a share subscription agreement and committed £3.5 million of pre-RTO equity funding to Stranger Holdings. QGC, which has an exemplary record in South Africa’s mining sector and a firm commitment to advancing green technologies and renewable energies, will become the single largest shareholder in Stranger Holdings with an approximate 29% interest on completion of the RTO transaction.
Mr Quinton van der Burgh, CEO of QGC and one of South Africa’s leading mining entrepreneurs, will join the Board of Directors of Stranger Holdings on completion of the RTO transaction.
Given the strong level of interest in the acquisition of Henkries and RTO transaction with MEML, Stranger Holdings has agreed to raise up to a further £1.5 million of equity funding through its UK based broker and advisors in the UK and Kenya.
The £3.5 million of funds committed by QGC and additional £1.5 million of funding will be used by Stranger Holdings to complete an updated feasibility study on Henkries and accelerate the planned development of a new uranium mine.
James Longley, Chairman of Stranger Holdings, said: “We are delighted to have secured this funding from QGC, which underwrites our RTO transaction and the acquisition of Henkries. This is a transformational deal for our company and our shareholders, as we enter the fast-growing uranium sector with a high-quality asset in South Africa. We look forward to working with QGC and Mr van der Burgh, who bring a wealth of experience and expertise in the mining industry.”
Quinton van der Burgh, CEO of Q Global Commodities Group (QGC), said: “We are excited to invest in Stranger Holdings and support its acquisition of Henkries. We believe this project has tremendous potential to become a significant producer of uranium in Africa, as the demand for clean energy increases globally. We are impressed by the management team and their vision to create a leading uranium company in the region.”
axle energy raises $1.6M in pre-seed funding to help homes save energy