Midas Minerals Secures High-Grade Otavi Project, Sets Drilling for Q3 2025
Midas Minerals has announced a transformative acquisition of the Otavi Copper-Gold-Silver Project in Namibia, unlocking significant exploration potential with plans to commence drilling later this year.
- Acquisition of 100% interest in 1,776 km2 Otavi Project from Nexa Resources
- Historic high-grade copper, silver, and gold intercepts highlight project potential
- Milestone payments totaling US$11 million with royalty buy-back option
- Drilling planned to start in Q3 2025 for resource definition and exploration
- Located in Namibia, a stable, tier 1 African mining jurisdiction with strong infrastructure
A Transformational Acquisition in Namibia
Midas Minerals (ASX: MM1) has taken a significant step forward with the acquisition of the Otavi Copper-Gold-Silver Project, a sprawling 1,776 square kilometre landholding in Namibia. This move positions Midas at the forefront of exploration in a region renowned for its rich mineral endowment and mining-friendly environment. The deal, struck with Nexa Resources’ wholly-owned subsidiary, includes a structured payment plan and a royalty buy-back option, underscoring the strategic value of the asset.
Rich Historical Data and Exploration Upside
The Otavi Project boasts an impressive history of shallow, high-grade mineral intercepts, including standout results such as 17.2 metres at 7.24% copper and 144.4 grams per tonne silver. Despite this, less than 40% of the project area has been explored with modern techniques, leaving a wealth of targets ripe for follow-up. Midas plans to leverage a substantial existing database of drill core, soil samples, and geophysical data to accelerate resource definition and regional exploration.
Strong Management and Clear Development Path
Backing the project is a seasoned management team with deep African mining experience, including Mark Calderwood, Sara Kelly, and Michael Naylor. Their track record in discovery, development, and corporate transactions provides confidence in navigating the complexities ahead. The company intends to commence drilling with multiple rigs in Q3 2025, aiming to deliver an initial mineral resource estimate and maintain a steady flow of technical updates.
Strategic Location and Infrastructure Advantages
Situated near established mines and smelters, including the Tsumeb smelter and Walvis Bay port, the Otavi Project benefits from excellent infrastructure, including sealed highways, rail access, power, and water. Namibia’s stable political environment and supportive mining regulations further enhance the project's attractiveness, providing a solid foundation for exploration and potential development.
Risks and Next Steps
While the acquisition is promising, Midas acknowledges several risks typical of early-stage mining ventures. These include the need for further capital, regulatory approvals, integration challenges, and exploration uncertainties. Completion of the acquisition is contingent on ministerial and third-party approvals, as well as a planned capital raise of A$10 million. Investors will be watching closely as Midas advances its drilling programs and begins to unlock the project’s value.
Bottom Line?
Midas Minerals’ Otavi acquisition sets the stage for a pivotal exploration campaign that could redefine its growth trajectory in Africa’s copper-gold-silver space.
Questions in the middle?
- Will Midas secure all regulatory approvals and complete the acquisition on schedule?
- How will the upcoming capital raise impact shareholder dilution and funding availability?
- What initial results from the Q3 2025 drilling campaign will reveal about the project’s resource potential?
