Blaze Minerals Secures 60% Stake in Uganda’s Gecko Minerals, Eyes Growth

Blaze Minerals is making waves in the resource sector with its recent binding agreement to acquire a 60% stake in Gecko Minerals Uganda, which holds two promising projects in Uganda: Ntungamo and Mityana. This move positions Blaze at the forefront of the critical metals market, a sector that’s heating up as global demand for materials like beryllium, rubidium, lithium, tin, and tantalite continues to surge.

The acquisition is not just a strategic play; it’s a calculated bet on the future of energy and technology. With the world shifting towards greener technologies and electric vehicles, the need for these metals is skyrocketing. Blaze’s entry into Uganda, a country rich in untapped resources, could be a game-changer. The Ntungamo Project, in particular, spans a whopping 60 square kilometers and is dotted with extensive pegmatites—two of which are over 140 meters wide and still open in all directions. This suggests not just potential but a wealth of opportunity that could be unlocked through further exploration and drilling.

Mathew Walker, Blaze Minerals’ corporate director, emphasizes the excitement surrounding this acquisition: “This strategic acquisition is consistent with our focus on critical metals and provides near term excitement for our shareholders with all preliminary exploration work and regulatory approvals in place in support of a maiden drilling programme.” This statement underscores the company’s readiness to hit the ground running and capitalize on the momentum of the deal. The immediate plan is to kick off discussions with potential drilling contractors, a move that signals a proactive approach to exploration and development.

The financial terms of the deal are intriguing, too. Blaze will purchase the 60% stake by acquiring shares from Gecko, with the remaining 40% held by Gecko free carried until a Bankable Feasibility Study is delivered. This arrangement provides Blaze with a cushion, allowing them to focus on exploration without the immediate pressure of additional financial commitments. The option to buy the remaining stake for $750,000 within two years—or convert it into a 2% net smelter royalty—adds flexibility and aligns with the company’s long-term strategic goals.

The distribution of 520 million shares to Gecko shareholders, equating to ten Blaze shares for each Gecko share held, indicates a strong alignment of interests and could foster a supportive shareholder base as both companies move forward.

As the energy landscape evolves, this acquisition could very well set the stage for Blaze Minerals to emerge as a key player in the critical metals arena. The combination of rich resources, strategic foresight, and a focus on shareholder value positions Blaze not just to participate in the market, but to lead it. The implications of this deal stretch beyond immediate gains; it could reshape how companies approach resource acquisition and development in a world increasingly reliant on critical metals.

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