Dark Star Minerals (CSE:BATT) has finalised a definitive agreement with Critical One (CSE:CRTL) to acquire full ownership of the Cobra North and Khan West uranium projects in Namibia. The agreement will see Dark Star pay a total of US$760,000 (A$1.17 million) to acquire 100 per cent of Critical One’s prospecting licences – EPL 7011, EPL 8115, and EPL 8531 – which are located near the Rossing Uranium Mine. Additionally, Dark Star will acquire a 16 per cent indirect interest in Critical One’s ML 86A mining licence and the exclusive prospecting licence EPL 8905, forming the Khan West Project. Dark Star Minerals is a rare earth explorer focused on advancing its portfolio of assets in Canada and Namibia.
As part of the deal, Dark Star has already paid $10,000 upon the execution of the letter of intent and issued 200,000 shares five days thereafter. These shares will hold a value greater than $0.10 per share, or the lowest permitted price on the Canadian Securities Exchange (CSE). Critical One will also receive a 2 per cent gross overriding royalty, of which Dark Star can buy back 0.5 per cent for US$1.5 million. Furthermore, Critical One CEO Duane Parnham will be appointed to the Dark Star board within four months of the agreement’s execution, subject to CSE approval.
Parnham expressed enthusiasm for accelerating the exploration and development of the projects through Dark Star’s holdings, which will manage exploration and development activities at the Cobra North Project during the option period. Dark Star CEO Marc Branson said the completion of the definitive agreement to acquire these projects marks a significant milestone for the company as it progresses its strategic reach on Namibia’s uranium assets. Critical One will also be able to engage in up to 30 per cent of financing plans held by Dark Star for up to a year after closing or until more than US$10 million has been raised.
