- 01NGX raises $3.6m to fund exploration and African projects.
- 02Acquiring interests in seven Namibian gold licences spanning 1,300sq km.
- 03Adds 194sq km Karas copper project near Haib; earn-in stakes up to 85%.
NGX Limited (ASX: NGX) has signed agreements to acquire majority interests in seven Namibian gold exploration licences covering more than 1,300 square kilometres across the Damara Belt.
The proposed consolidation spans the Erongo gold project and Otjikoto South project, placing NGX near established deposits and along structural corridors regarded as prospective for gold.
The company has separately obtained rights over the 194km² Karas copper project near the Haib copper deposit, broadening its proposed Namibian portfolio beyond gold.
Alongside the transactions, NGX has completed a bookbuild for a $3.6 million placement to finance exploration across its new and existing African projects.
Damara Belt Gold Projects
Erongo lies about 250km by road northwest of Windhoek and includes ground near WIA Gold (ASX: WIA) and its Kokoseb deposit, which hosts a reported 3.78 million ounces of gold.
Its prospective Kuiseb Formation rocks are crossed by the Omaruru, Welwitschia, and Tubusis lineaments, where the company intends to target structurally controlled gold mineralisation through geochemical sampling.
The Otjikoto South ground, previously held by B2Gold, is near the Otjikoto gold mine and contains geological trends associated with that broader mineralised system, although only limited drilling has occurred.
"This ground consolidation represents an exciting evolution of NGX's presence in Namibia, giving the company a substantial and highly prospective gold position in the Damara Belt,” executive director Peter Fox said.
“The quality of this ground, […] hosting the same geological footprints and significant regional structures associated with the region's gold deposits, speaks to the calibre of the opportunity.”
Karas Copper Prospect
Karas comprises a granted exploration prospecting licence approximately 10km east of Koryx Copper’s Haib deposit, within a geological setting NGX considers favourable for porphyry-style copper mineralisation.
The licence hosts several known copper occurrences including Sperlingputs, where oxide copper was worked historically and both oxide and sulphide mineralisation occur along a north-striking shear zone.
NGX plans initial soil and calcrete sampling at Erongo, supported by field-based gold analysis and an independent geological review to rank targets before more detailed exploration.
The company is establishing its Namibian operating team and intends to recruit a project geologist, field technicians and local sampling personnel as work across the new ground advances.
Earn-In Licence Terms
Under nine binding earn-in and shareholder agreements with seven vendors, NGX can initially acquire 51% of the relevant project companies and increase its interest to as much as 85%, subject to conditions.
Initial consideration totals up to US$545,000, including US$175,000 already paid, with up to a further US$2.46m payable in stages over seven years to reach 85% on seven licences and 74% on two.
Those two licences carry options for an additional 11% at independently determined fair value, while milestone payments and NGX funding of joint venture costs could create further commitments.
Completion depends on Namibian approvals and licence transfers, while one renewal faces a proposed refusal and an additional expired licence has uncertain tenure, with no assurance either will be renewed.
Raising to Fund Exploration
The placement involves 60 million shares at six cents each, representing discounts of 14% to the last traded price and 17% to the 15-day volume-weighted average price.
It is not underwritten, with an initial 22,652,960 shares intended for issue under existing capacity and the remaining 37,347,040 shares dependent on shareholder approval expected to be sought in December.
Directors or their nominees have subscribed for $540,000 of the raising, with that participation also subject to shareholder approval, while proceeds will support exploration in Namibia and Malawi and general working capital.
Although the licence agreements provide an entry into substantial prospective ground, the projects remain early-stage and future exploration, tenure decisions and earn-in obligations will determine the extent of NGX’s eventual interests.
“With 1,300km² now under agreement and extensive sampling planned, we look forward to unlocking the value of this landholding and delivering on the significant gold potential we see across the Belt," Mr Fox added.
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