Zenith Energy (LSE:ZEN) is spinning out its Lombardy uranium licences into newly incorporated Reveille Resources and will take a 25% stake via a £200,000 initial equity investment that Ajax is matching, with the funds intended to advance Reveille's Aquis Growth Market admission.
The FEI spin-out of the Val Vedello and Novazza permits will be transferred to Reveille on a "no profit, no loss basis" for expenditure incurred to date, and the £400,000 of initial subscriptions will be used to progress conversion to a public company, Zenith said; Zenith is a listed international energy production and development company.
Both Zenith and Ajax will each hold 25% of Reveille's issued share capital after their subscriptions, Zenith will be reimbursed in Reveille shares at the IPO price for costs totalling £350,000 related to the spin-out and licence acquisition, and Zenith says it intends to inject further capital at IPO.
"This structure provides a clean, coherent, and readily understandable strategic narrative, centred on pursuing opportunities across Europe, with uranium exploration in Italy positioned as the flagship core project," Andrea Cattaneo, Chief Executive Officer of Zenith, said.
The Lombardy Project comprises the Val Vedello and Novazza deposits, described as Italy's largest known uranium resource base with historical estimates of roughly 6,000 tonnes of U3O8 at Val Vedello and about 1,000 tonnes of metallic uranium at Novazza, and planned modern exploration includes over 30,000 metres of underground drilling to validate historical data.
