Keras Resources plc is shifting its focus to copper exploration and development in Namibia, backed by a proposed N$40 million (£1.8 million) capital raise and the disposal of its US phosphate business.
The London-listed company has conditionally agreed to acquire an initial 51% stake in Cornerstone Mining, which holds three exploration licences covering 6,214 hectares in the Kaoko Copper Belt in the Kunene Region of north-western Namibia.
Keras will also have an option to increase its interest in Cornerstone to 70% for N$16 million (US$1 million) as it seeks to build a copper-focused business in Namibia.
“Drawing on the wider team’s operational experience in Namibia, our strategy is to generate near-term cash flow from small-scale oxide production while systematically exploring the broader land package and deeper mineralisation, with the ambition of building a substantial and sustainable copper business for the benefit of all stakeholders,” Keras Resources Executive Chair Russell Lamming said.
The Cornerstone licences have undergone previous exploration, including 1,974 metres of diamond drilling and a bulk sample of about 15,000 tonnes, which Keras said demonstrated potential for copper oxide development.
The company plans to review existing exploration data, identify priority targets, expand copper oxide resources and undertake further drilling on EPL 4305.
Keras also plans to work with local mining claim holders to pursue early small-scale copper oxide production, which it expects could generate near-term revenue while creating employment and local supply opportunities.
To fund the strategy, Keras has conditionally raised N$37 million (£1.7 million) through the issue of 85 million new shares at 2 pence each.
Directors and senior management intend to contribute a further N$2.18 million (£100,000), taking the total potential capital raise to about N$39 million (£1.8 million).
The company has also agreed to sell its US phosphate business, Keras US, for approximately N$36.16 million (£1.66 million). The consideration comprises N$16 million (US$1 million) in cash and the cancellation of about N$20 million (£923,409) in convertible loan note debt.
Keras will retain an uncapped royalty of N$164 (US$10) per long ton on qualifying future phosphate production from the Diamond Creek mine in Utah.
Following completion of the transactions and fundraising, Keras expects to be debt-free and hold approximately N$39.83 million (£1.83 million) in cash.
The company also expects royalty income of about N$1.09 million (£50,000) per month from its Nayéga manganese and Diamond Creek interests.
As part of the strategic shift, Keras plans to change its name to Okopa plc, subject to shareholder approval, to reflect its new focus on Namibian copper.
Shareholders are expected to vote on the acquisition, fundraising and proposed name change at the company’s annual general meeting scheduled for 12 October 2026.
