African Pioneer Plc has raised N$39.2 million (£1.8 million) through a share fundraising to advance its copper-gold projects in Namibia, with a primary focus on the Ongombo and Ongeama licences located about 25 kilometres from Windhoek.
The exploration and resource development company, which also holds projects in Zambia and Botswana, completed the fundraising at a price of 0.90 pence per share. The capital was raised through the issuance of 200 million new ordinary shares, comprising a placing of N$17.3 million (£793,000) and a direct subscription of N$21.9 million (£1.007 million) by existing shareholders and directors.
Executive Chairman Colin Bird said the fundraising would enable the company to progress technical evaluations at Ongombo and Ongeama before moving to a feasibility study and, if viable, mine construction.
He said the Ongombo project already hosts an estimated 300,000 tonnes of contained copper, with potential for further resource expansion, and benefits from an existing mining licence and proximity to key infrastructure.
“This fundraising will allow the company to focus on technical evaluation work at the Ongombo and Ongeama licences in Namibia before proceeding to a feasibility study and, if appropriate, mine construction,” Bird said.
“The Ongombo project has the advantage of approximately 300,000 tonnes of contained copper with open potential for additional resources. It is extremely well located, about 25 kilometres from Namibia’s capital, Windhoek, and has a mining licence in place,” he added.
As part of the transaction, directors subscribed N$2.0 million (£90,000) worth of shares. Additional shares were also issued to directors and consultants in settlement of accrued fees, allowing the company to conserve cash. Long-term shareholder Jonathan Swann contributed N$8.2 million (£377,500) to the subscription.
African Pioneer said the proceeds will be used to fund drilling and mine design work at Ongombo and Ongeama, including programmes aimed at extending the current open pit and upgrading underground resources.
The company added that higher copper, gold and silver prices have improved project economics, prompting a review of mine design and processing plant capacity.
“Overall, we are very excited about the prospects for African Pioneer and look forward to unlocking the value we believe exists at Ongombo, while making further progress at our north-western Zambian exploration licences,” Bird said.
