Namibia’s Ministry of Mines and Energy has approved the transfer of 10 licences to Otjitombo Mining (Pty) Ltd, marking a key milestone in Midas Minerals Ltd’s planned acquisition of the Otavi Copper Project.
“With the transfer of the Otavi Project licences to the target entity, we have passed the key approval hurdle in the acquisition of the project,” said Midas Managing Director Mark Calderwood.
The only outstanding third-party approval is from the Namibian Competition Commission (NCC), which must review the transaction before Otjitombo’s shares can be transferred to Midas’ Namibian subsidiary. “The NCC process is considered to be largely procedural given the nature of the transaction and the industry,” Calderwood said.
Once the NCC has given its approval, Midas must raise a minimum of A$3.5 million before costs to finalise the deal. The company has not yet determined the timing or pricing of the capital raise.
Calderwood said Midas expects to begin drilling at Otavi before the end of the year. “We look forward to completing the third-party approval process and then pushing on quickly to completion of the acquisition of the Otavi Project to allow commencement of drilling, anticipated to occur in Q4. In the interim we plan to commence drilling on the South Otavi project in September,” he said.
The Otavi Copper Project spans 1,776 km² and has strong exploration potential. Historic drill results include 17.2 metres at 7.24% copper and 144.4 g/t silver, but less than 40% of the ground has been tested with modern exploration techniques.
