The listing bell rang at the Namibian Stock Exchange (www.nsx.com.na) on 4 August for the listing of West Australian Metals Limited (“WAM”) on the NSX’s Development Capital Board (DevX). It is the sixth uranium producer to be listed on the NSX and is also listed on the Australian Securities Exchange (www.asx.com.au, where it is listed as WME).
WAM is exploring for uranium and in 2006 acquired 80% of Marenica uranium project, with an inferred resource of about 34 million pounds of uranium oxide, just north of the Trekkopje uranium mine in the western desert Erongo Region which is being developed by French giant Areva.
Namibia is the fourth largest producer of uranium in the world, supplying 7%-10% of the total. This could rise driven by increased exploration, in turn caused by rising uranium prices as the world takes keener interest in alternat ive energy sources which do not have global warming impact. WAM is the sixth dual-listed uranium producer on the NSX.
The company has pledged investment of AUD 8 mln ($6.7 mln) and could start production in 2012. Namibia is becoming a major uranium producer and WAM CEO John Young was reported in local press at the listing ceremony to attribute the company’s interest in Namibian uranium to the stable regulatory and political environment, as well as the high prospects of discovering both primary and secondary uranium deposits.
“This is one of the best places to explore, certainly in Africa, if not in the world,” he is reported to have said.
He said the mining project would have only positive effects on the surrounding communities and minimal environmental impacts. The company also intends some Black Economic Empowerment transactions and currently reportedly employs five Namibians.
WAM dual listed 448,740,896 fully paid shares, which closed at N$1.27 on 4 August – adding some N$567 mln ($71 mln) to the total market capitalization – and up 7 cents by the close of trading on 5 August. The listing was sponsored by IJG Securities (Pty.) Ltd.