ASX-listed Deep Yellow has taken another step towards development of its flagship Tumas uranium project in Namibia, announcing the execution of a transmission power supply agreement with State-owned utility NamPower, alongside continued progress on engineering, early works and project financing.

The uranium developer reported on Wednesday that its wholly owned subsidiary, Reptile Uranium Namibia, had signed the power supply agreement with NamPower, subject to conditions precedent including a final investment decision (FID) on the Tumas project.

Acting CEO Craig Barnes described the agreement as a milestone as the company continued to de-risk the greenfields project ahead of a potential construction decision.

“The execution of the power supply agreement with NamPower is another important step in advancing our preparation for the construction of the Tumas project,” Barnes said, adding that the company would only move to FID once uranium market conditions supported development.

Under the agreement, Tumas will be connected to the Namibian regional grid via a dedicated 22 km, 220 kV power line, with associated switching yard and substation infrastructure to be designed and built by Deep Yellow and handed over to NamPower after commissioning. Power supply will be supplemented by an on-site solar farm to be developed under a build, own, operate and transfer arrangement with an independent power producer.

The solar facility is designed to supply up to the full project power demand during daylight hours, accounting for at least 30% of total electricity requirements and reducing exposure to peak grid tariffs. Negotiations with a preferred solar supplier are continuing, while detailed design of the grid connection has commenced.

Progress is also being made on water supply arrangements. Fresh water for the project is planned to be sourced from the Swakopmund Reservoir, via a 65 km pipeline running parallel to the C28 highway. Draft water supply and development agreements have been received from NamWater, with negotiations now under way. Preliminary pipeline design has been completed and tenders for a design-and-construct contract received.

On the engineering front, Deep Yellow reported that detailed engineering for Tumas is now more than 60% complete, with the 3D engineering model exceeding 65%. More than 70% of major process plant equipment has been tendered and vendor data orders placed for all long-lead items. Project schedules, capital estimates and financial models are being updated in preparation for FID.

Early works at site are also advancing. Bulk earthworks, which began in October, are 24% complete and are expected to finish in March 2026. Temporary construction facilities, including access roads, water supply, offices and communications, have been established.

In parallel, project financing efforts continue to progress. The company said an independent technical expert had completed environmental and social due diligence for Nedbank, the mandated lead arranger, marking a key milestone towards securing project debt funding and enabling a move into the documentation phase.

Tumas is one of two advanced uranium projects underpinning Deep Yellow’s growth strategy, alongside Mulga Rock in Western Australia, as the company positions itself to become a diversified, mid-tier uranium producer.