Midas Minerals Ltd has secured firm commitments to raise N$459.48 million (US$28 million) before costs through a single-tranche placement to institutional and international investors.
The placement will see the issue of more than 37.3 million new shares at approximately N$12.31 (US$0.20) per share. Following completion, the company expects its cash position to increase to around N$541.53 million.
Managing Director Mark Calderwood said the funds will be used to advance exploration and development at the company’s wholly owned Otavi Copper-Silver-Gold Project in Namibia.
“We are encouraged by our initial work at Otavi, particularly at the Spaatz and T-13 deposits. We plan to use proceeds from this placement to advance our resource definition and exploration drilling on the Otavi Project. At the same time, we will also undertake additional metallurgical test work on several deposits,” he said.
The company said proceeds will be directed towards expanding resource and exploration drilling, while also supporting early-stage feasibility work, including metallurgical testing. The funds will also cover transaction costs and provide working capital.
The capital raise follows the announcement of a maiden Mineral Resource Estimate (MRE) for the T-13 deposit, a key asset within the Otavi project.
The deposit hosts an inferred resource of 2.5 million tonnes at 1.4% copper and 26.5g/t silver.
On a copper equivalent basis, this equates to approximately 211,000 tonnes at 1.9% CuEq. The resource remains open at depth and along strike, indicating potential for further expansion.
“Initial Mineral Resource Estimate on pre-acquisition drilling only on high-grade T-13 Copper-Silver deposit. 10.5Mt at 1.6% Cu and 21g/t Ag (2.0% CuEq), Inferred 169kt of Cu and 7.1Moz of Ag (211kt of CuEq), 80% value in copper, 20% in silver. High grade of 4.9Mt at 3.2% CuEq for 153kt CuEq in the main zone,” the company said.
The T-13 deposit is shallow, with mineralisation starting at or near surface. It is located within the Otavi Fold Belt, a region known for major deposits including Tsumeb and Kombat.
Beyond T-13, Midas holds a 1,776km² land package in the region and has identified several high-priority targets.
Multiple drilling rigs are currently being deployed to test for further mineralisation, with early exploration returning high-grade copper and silver intercepts.
