Unicorn Mineral Resources (LSE:UMR) has signed a Share Purchase Agreement to acquire a 75% interest in Q Global Copper Namibia (Pty), owner of the historic Klein Aub Copper Mine in Namibia's Kalahari Copperbelt.
The London-listed exploration company said the deal marks its pivot from exploration toward near-term production, targeting cash generation from processing surface material rather than waiting on a greenfield build.
QGC Namibia holds two granted exploration licences covering 6,536 hectares, including in-house estimates of 5.5 million tonnes of historical surface tailings grading 0.24% copper and 7.4g/t silver, plus around 100,000 tonnes of higher-grade slimes at 1.34% copper and 33.55g/t silver.
The underlying underground workings previously produced 5.5 million tonnes at an average grade of 2.0% copper and 50g/t silver, leaving outcropping mineralisation along strike as a further exploration target.
Initial consideration totals ZAR6m (€324,000), split between ZAR2m payable on completion, part cash and part 444,925 new shares, and ZAR4m in deferred loan notes.
A further ZAR4m in deferred loan notes converts partly into 1.41 million new shares, with the remainder redeemed in cash once a mining licence is granted or regulatory updates with Namibia's mines ministry are completed.
A separate exploration data purchase of ZAR19m, less outstanding debts, will be settled largely through the issue of up to 7.65 million new shares.
The initial consideration, transaction costs and site work are funded through Unicorn's existing £1.25 million unsecured loan facility with Electro Automation (Group), announced in August.
"We are entering the copper market at a favourable time, as demand driven by global electrification continues to grow," said chairman Paddy Doherty, adding that the company aims to progress a bankable feasibility study and advance Klein Aub toward production over the next 12 months.
News Intelligence what this means for the company
Unicorn Mineral Resources has agreed to acquire a 75% stake in Klein Aub, a historic Namibian copper mine, for €1.57m in combined initial and deferred consideration, funded by a £1.25m unsecured loan facility from Electro Automation (Group). The deal marks a strategic shift from pure exploration toward near-term production, targeting cash generation from processing surface tailings and slimes rather than developing a greenfield mine—a pivot the company aims to advance toward a bankable feasibility study within 12 months.
The acquisition commits Unicorn to a production pathway with defined near-term cash-generation targets, but success hinges on obtaining a mining licence from Namibia's mines ministry and validating the economics of processing low-grade tailings. The deal is funded entirely by debt at 10% per annum interest, creating a fixed cost burden independent of project progress.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
