Midas Minerals Secures 1,776 km² Otavi Copper Project with Upfront US$3M Payment

Transformational Acquisition for Midas Minerals

Midas Minerals Ltd (ASX: MM1) has announced a landmark agreement to acquire the Otavi Copper Project in Namibia from Nexa Resources, a major global base metals producer. Covering approximately 1,776 square kilometres, the project represents a significant step-change for Midas, providing access to multiple high-grade copper deposits and extensive exploration upside in a stable and mining-friendly African jurisdiction.

The acquisition includes two key deposits, T13 and Deblin, which have demonstrated compelling drill results over the past decade. Highlights from the T13 deposit include intercepts such as 17.2 metres at 7.24% copper and 144.4 grams per tonne silver, with even higher-grade zones reaching 16.65% copper over 6 metres. The Deblin deposit also shows promise with intercepts like 15 metres at 4.15% copper, accompanied by silver and gold credits.

Strategic Payment Structure and Royalty Terms

The deal is structured to minimise upfront capital outlay, with Midas committing US$3 million in cash upon completion. Further payments of US$3 million, US$2 million, and US$2 million are deferred and contingent on achieving key milestones: completion of a pre-feasibility study, a decision to mine, and commencement of commercial production, respectively. Additionally, Nexa will retain a 1% net smelter return royalty on all commodities extracted, half of which Midas may buy back for US$2 million.

Immediate Exploration and Resource Definition Plans

Midas is preparing to commence drilling immediately upon licence transfer, focusing on resource definition at the known deposits and testing numerous regional targets identified through Nexa’s extensive dataset. This dataset includes over 56,000 metres of diamond drilling, more than 17,000 soil samples, and comprehensive geophysical surveys. The company plans a multi-rig drilling campaign to rapidly delineate resources and explore walk-up targets, leveraging the project's favourable geology and infrastructure.

The Otavi region benefits from excellent infrastructure, including rail, power, water, sealed roads, and proximity to the operational Tsumeb copper smelter. Namibia’s ranking as the 4th most attractive mining jurisdiction in Africa by the Fraser Institute further supports the project's development potential.

Geological Context and Metallurgical Insights

The Otavi Copper Project lies within the Otavi Mountain Land, a Proterozoic carbonate platform known for world-class base and precious metal deposits. The T13 deposit features structurally controlled copper mineralisation hosted in shear zones, with mineralogy dominated by chalcocite, covellite, chalcopyrite, and bornite. Preliminary metallurgical test work indicates favourable processing characteristics, with flotation recoveries exceeding 85% for oxide ores and over 90% for sulphide ores, producing concentrates low in deleterious elements.

Exploration targets extend beyond the main deposits, including the Hartebeestpoort, Driekoppies, and Monty prospects, each offering significant copper and gold potential. Notably, only 36% of the project area has undergone modern exploration, leaving substantial scope for new discoveries.

A Platform for Growth in a Premier Mining Jurisdiction

Midas Managing Director Mark Calderwood described the acquisition as transformational, emphasizing the opportunity to rapidly build a high-grade resource base and deliver shareholder value. The company’s strategy combines resource definition drilling with regional exploration to unlock the full potential of the Otavi Fold Belt, a region geologically analogous to the prolific Central African Copperbelt but historically underexplored.

Namibia’s stable political environment, transparent regulatory framework, and supportive infrastructure underpin the project’s attractiveness. Midas’ acquisition aligns with its broader portfolio, which includes gold and lithium projects in Australia and Canada, positioning the company for diversified growth in critical minerals.