Key Highlights

  • Deep Yellow has executed a long-term Water Supply Agreement with Namibia Water Corporation (NamWater), securing water supply for construction, commissioning and future operations at the Tumas Project.
  • The company has finalised Subscription and Shareholders Agreements with Namibian partner Oponona Investments, formalising local ownership arrangements under which Oponona will hold a 5% stake in Reptile Uranium Namibia.
  • Oponona's share of historical and future Tumas expenditure will be loan-carried and repayable from Oponona's future dividends, with a Special Purpose Entity to direct 40% of Oponona's future dividends toward community initiatives.
  • Deep Yellow continues to progress toward an anticipated Final Investment Decision for Tumas in the fourth quarter of 2026, subject to market conditions.

Deep Yellow Limited (ASX:DYL) has announced the completion of two further milestones for its flagship Tumas Project in Namibia. The company's wholly owned subsidiary, Reptile Uranium Namibia (Proprietary) Limited (RUN), has executed a long-term Water Supply Agreement with NamWater for the supply of water to Tumas, securing what the company describes as one of the project's most critical long-term operating requirements.

The Water Supply Agreement provides long-term security over water supply and establishes the commercial framework governing water delivery, quality, capacity and long-term service arrangements between NamWater and Deep Yellow. The agreement provides for dedicated water supply capacity over the life of the project, subject to customary commencement conditions and operational arrangements, supporting construction activities, commissioning and long-term uranium production. The financial terms of the agreement are commercial-in-confidence, though the company states they are consistent with industry standards.

Oponona Local Ownership Agreements

Deep Yellow's wholly owned Namibian subsidiary, Reptile Mineral Resources and Exploration (Proprietary) Limited (RMR), together with RUN, have entered into Subscription and Shareholders Agreements with Oponona Investments (Proprietary) Limited for Oponona to become a 5% shareholder in RUN. RUN holds the Mining licence (ML237) and the exclusive prospecting licences (EPL3496 and EPL3497) that comprise the Tumas Project and various other Namibian exploration projects, including the Tinkas and S-Bend Prospects and the stand-alone Omahola Project.

The transaction supports compliance with local ownership requirements attached to ML237, as contemplated in a previous binding Heads of Agreement. Oponona is a privately owned Namibian enterprise established independently and in alignment with the Namibian Ministry of Mines and Energy's requirements for supporting local ownership. The Shareholders Agreement provides for Oponona to create a dedicated Special Purpose Entity, which will invest in the local community.

Under the Shareholders Agreement, Oponona's 5% share of historical and future Tumas Project expenditure, including construction and development expenditure up to and including the commercial production date, will constitute an interest-free Loan from RMR to Oponona, repayable from Oponona's future dividends. The Shareholders Agreement also provides for the Special Purpose Entity's beneficial entitlement to 40% of Oponona's future dividends, which are to be directed toward community initiatives. Completion of the allotment and issue of shares to Oponona in RUN is expected to occur within seven days, with the Shareholders Agreement coming into effect once the Subscription Agreement is completed.

Construction Progress and De-Risking Strategy

The company stated that the NamWater and Oponona agreements are consistent with its disciplined Tumas execution strategy as it progresses toward a Final Investment Decision, anticipated in the fourth quarter of 2026, subject to market conditions. Bulk earthworks at Tumas have been completed, and major civil and concrete construction activities have commenced following the recent award of approximately A$34 million of works to two Namibian contracting partners.

The civil and concrete works have established multiple concurrent work fronts, which the company states provides greater execution flexibility and reduces schedule risk. In parallel, Deep Yellow continues to progress detailed engineering, procurement, project optimisation, financing and remaining enabling infrastructure and commercial workstreams required to support a Final Investment Decision.

Deep Yellow Managing Director and CEO Greg Field said the closing out of the two workstreams builds momentum as the company systematically prepares Tumas for development. He said securing long-term water provides certainty over one of Tumas's most critical operating requirements, while the Oponona agreements give effect to local ownership arrangements contemplated under a previously disclosed binding Heads of Agreement.

Conclusion

The execution of the NamWater agreement and finalisation of the Oponona ownership arrangements represent two further steps in Deep Yellow's stated strategy of systematically de-risking the Tumas Project ahead of a Final Investment Decision targeted for the fourth quarter of 2026. Together with completed bulk earthworks and commenced civil and concrete construction works, the company describes these milestones as building construction readiness and reducing execution uncertainty as it progresses remaining engineering, procurement and financing workstreams.