Mining company Noronex Limited has received the first N$14.4 million (A$1.25 million) tranche from the sale of its non-core Witvlei Copper Project in Namibia after the buyer completed due diligence.
The payment was triggered after Joint Era Mining Co., Limited (JEM) finalised financial, legal and technical due diligence on the project to its satisfaction, meeting a key condition under the binding heads of agreement between the parties.
Noronex Managing Director Victor Rajasooriar said the payment is shared on an 80:20 basis between Noronex and Larchmont Holdings Pty Ltd, with Noronex receiving N$11.54 million (A$1.0 million). The funds are expected to strengthen the company’s cash position and support ongoing exploration programmes.
“We are very pleased to have received the first A$1.25 million tranche following JEM’s successful completion of due diligence. This marks an important milestone in the divestment of the Witvlei Project, with the net proceeds to Noronex further strengthening our balance sheet,” he said.
Under the agreement, 60% of Larchmont Investments Pty Ltd, the joint venture vehicle holding the Witvlei licences, is being transferred to JEM. Once the transfer is completed, JEM will assume responsibility for 100% of the project’s expenditure obligations, including statutory fees, taxes and holding costs associated with the licences.
JEM has also begun preparations to apply for a mining licence for the project. Once the licence is granted, a second milestone payment of N$14.4 million (A$1.25 million) will be triggered, again payable on an 80:20 basis to Noronex and Larchmont.
A further N$23 million (A$2 million) in deferred consideration will be payable through a 2% net smelter return royalty once commercial production begins.
“JEM has demonstrated a strong commitment to advancing the project, and its focus now shifts to securing the mining licence, which will trigger the second tranche payment. The funds received will support our exploration programmes across our Namibian copper and uranium portfolio. This transaction aligns with our strategy of rationalising non-core assets while directing capital towards the most prospective opportunities within our extensive Kalahari Copper Belt tenure,” Rajasooriar said.
The transaction forms part of Noronex’s strategy to streamline its asset portfolio and concentrate investment on exploration opportunities across Namibia and Botswana, particularly within its holdings along the Kalahari Copper Belt.
