ASX-listed Arcadia Minerals Ltd has executed a binding term sheet valued at N$555,000 (A$50,000) with Hongkong Xinhai Mining Services Limited, aimed at advancing the Swanson Tantalum Project in Namibia towards becoming a cashflow-generating operation while limiting upfront capital requirements.
Under the agreement, Xinhai has been granted an exclusive 45-day option to enter into a definitive agreement to develop the Swanson Tantalum Project, which comprises mining licence ML223 and exploration licence EPL 5047.
If exercised, the agreement would see Xinhai earn an interest in the project through the construction and commissioning of a gravimetric processing plant with a capacity matching or exceeding the parameters set out in the project’s 2023 Definitive Feasibility Study.
In addition, Xinhai would undertake extensive exploration across EPL 5047 targeting lithium, tantalum and mafic-ultramafic mineralisation, with the aim of extending mine life or increasing processing throughput.
Arcadia Executive Chairman Jurie Wessels said the partnership could materially accelerate the project’s development timeline.
“Arcadia is pleased to be working with a group of Xinhai’s calibre, a globally established mining services company with a strong track record of advancing projects from concept through to operation,” Wessels said.
“The option agreement, if exercised, would bring substantial commercial and technical depth to Arcadia and provide a clear pathway for transitioning the Swanson Project towards production.”
The collaboration is intended to support Arcadia’s transition from an exploration company to a producer of ethically sourced, non-conflict tantalum concentrate.
Tantalum is a critical mineral used in high-growth sectors including defence electronics, aerospace systems, semiconductor manufacturing and medical devices.
By establishing a production pathway in Namibia, a stable mining jurisdiction, Arcadia aims to position itself as a responsible alternative to supply chains concentrated in higher-risk regions.
“Swanson is a technically robust project, located in a stable jurisdiction, with a de-risked development pathway and additional upside potential through further exploration,” Wessels said.
“Collaboration with Xinhai could create opportunities to optimise throughput, recovery and mine life, potentially delivering outcomes beyond those outlined in the 2023 Definitive Feasibility Study.”
Separately, Arcadia said it has secured firm commitments for a capital raising to strengthen its balance sheet and support its growth strategy.
The company has received commitments totalling N$8.3 million (A$750,000) through the issuance of 25 million CHESS Depositary Interests.
Arcadia’s directors are also seeking shareholder approval to convert up to N$1.6 million (A$150,000) in outstanding expenses and accrued fees into equity on the same terms as the placement.
