Dark Star Minerals (CSE:BATT) has announced its intent to acquire 100% of Critical One’s (CSE:CRTL) Cobra North and Khan West uranium projects in Namibia’s Erongo province. The deal involves a payment of US$760,000 and the issuance of 14.2 million shares priced at $0.10 each. Critical One will also receive a 2% overriding royalty on each project, payable upon commencement of production, with Dark Star holding the option to repurchase 0.5% of each royalty for US$1.5 million in cash.
Further terms include additional share issuances valued at $1.75 million dependent on Dark Star’s trading price on the first and second anniversaries of the agreement. Critical One’s CEO and executive Chairman, Duane Parnham, will join Dark Star’s board within four months. Additionally, Critical One retains the right to participate in up to 30% of any financing Dark Star undertakes, one year after closing or following a $10 million capital raise.
The Cobra North Project features 11 prospective areas identified in prior drilling, which indicated uranium mineralization across 3,720m from 50 drillholes. A 2015 JORC-compliant resource estimate reported 15.6 million tonnes at 260 parts per million uranium oxide, containing 9 million pounds of uranium oxide. At Khan West, exploration by Critical One revealed a high of 8.47% uranium oxide in chemical assays, with an average of 1.33% uranium oxide and a scintillometer reading of 15,000 counts per second. Dark Star, with a market capitalization of C$4.18 million, believes these acquisitions will provide geological potential and strategic advantages due to proximity to the Rössing Uranium Mine.
