Unicorn Mineral Resources Plc has secured N$27.14 million (£1.25 million) in funding to advance the acquisition and initial development of the Klein Aub Copper Mine in Namibia as it moves towards becoming an operating mining company.
The company said it has fully drawn down an unsecured loan facility provided by Electro Automation (Group) Limited, a company controlled by Unicorn Chairman Paddy Doherty.
The funding will be used to progress and complete the Klein Aub acquisition, undertake initial development and preparatory work, establish an operational presence in Namibia and advance technical, metallurgical and mine development activities.
Part of the funding will also provide general working capital for the company’s operations in Namibia and Ireland.
“The Facility provides the Company with additional working capital to progress the acquisition of the Klein Aub Copper Mine in Namibia and to advance the Company’s initial development plans for the project,” Unicorn said.
“The full drawdown of the Facility follows the Company’s recent announcement regarding the signing of documentation relating to the Acquisition and represents an important step in providing the Company with the capital required to progress the transaction and its associated development activities.”
The company said the loan is unsecured, with no security granted over its assets.
The drawdown follows the signing of documentation related to the Klein Aub acquisition and forms part of Unicorn’s strategy to transition from an exploration-focused company to mine development in Southern Africa.
Unicorn Chief Financial Officer John O’Connor said the company’s immediate focus is completing the transaction and establishing the technical and operational capacity required to advance Klein Aub.
“Following the signing of the Klein Aub acquisition documentation, our immediate priority is to progress the transaction and put in place the planned technical, operational and management resources required to advance the project,” he said.
“This funding gives the Company the ability to continue that work while maintaining momentum towards our overall planned activities in Namibia.”
Klein Aub is Unicorn’s principal development opportunity in Namibia, where the company plans to assess the historical mine workings, mineralised material and associated tailings.
The company aims to establish a viable copper mining and processing operation at the project.
“We are increasingly focused on transitioning Unicorn towards becoming an operating mining company, and Klein Aub represents a significant opportunity to establish a substantial revenue producing copper project in Namibia,” O’Connor said.
The company said it will provide further updates as it progresses the acquisition and begins its planned development programme at Klein Aub.
