Can Kaoko’s IPO Deliver on Ambitious Karibib Exploration Targets?

• Binding four-stage farm-in agreement with Kaoko Metals
• Immediate cash payments and non-refundable deposit to Arcadia
• Potential for Kaoko to earn up to 100% interest through staged milestones
• Arcadia retains 2% net smelter royalty and milestone share payments
• Kaoko Metals plans ASX IPO to fund exploration and development

Strategic Partnership to Unlock Karibib’s Potential

Arcadia Minerals has taken a significant step forward in advancing its Karibib Copper-Gold Project in Namibia by signing a binding farm-in agreement with Kaoko Metals. This four-stage earn-in deal allows Kaoko to progressively acquire up to 100% ownership of the project by meeting exploration expenditure targets and delivering key milestones, including resource estimates and feasibility studies.

Under the agreement, Arcadia receives immediate financial benefits, including a non-refundable $35,000 deposit and staged cash payments totaling $400,000. Beyond cash, Arcadia stands to gain milestone shares in Kaoko Metals and a 2% net smelter royalty on future production, ensuring ongoing exposure to the project’s upside without further capital outlay.

Minimising Dilution While Maximising Progress

Arcadia’s Executive Chairman, Jurie Wessels, emphasised that the deal aligns perfectly with the company’s strategy to attract committed partners who can fund exploration and development, thereby advancing projects without diluting existing shareholders. This approach is particularly timely given the current strong copper and gold price environment, which enhances the project’s value proposition.

Kaoko Metals, led by Managing Director Gerard O’Donovan, brings in-country expertise and a proven track record, having recently led a successful ASX listing and resource growth at a US silver-gold project. Kaoko’s planned IPO on the ASX, targeting a minimum $5 million raise, is a condition precedent to the farm-in, underscoring the importance of capital markets in enabling resource development.

Structured Milestones and Conditional Progression

The farm-in is structured in four stages, each requiring Kaoko to meet specific exploration expenditure and technical milestones, such as announcing a mineral resource estimate and completing a feasibility study. Failure to meet these milestones triggers the formation of a joint venture with Arcadia retaining a significant interest, ensuring the project continues to progress regardless of Kaoko’s decisions.

This staged approach balances risk and reward, providing Kaoko with clear targets while protecting Arcadia’s long-term interests. The inclusion of milestone share payments further aligns incentives between the two companies.

Broader Portfolio Implications

While Karibib is a key asset, Arcadia continues to explore other value-accretive opportunities across its portfolio, which includes lithium and tantalum projects in Namibia. The company’s ability to attract partners like Kaoko could serve as a blueprint for advancing these assets efficiently and sustainably.

Overall, this agreement marks a pivotal moment for Arcadia, combining immediate financial benefits with a clear pathway to unlocking the Karibib project’s potential in a globally significant copper-gold district.

Bottom Line?

Arcadia’s farm-in deal with Kaoko Metals sets the stage for accelerated exploration while safeguarding shareholder value amid rising copper and gold prices.

Questions in the middle?

• Will Kaoko Metals successfully complete its ASX IPO and capital raising on schedule?
• How quickly can Kaoko meet the staged exploration and resource milestones at Karibib?
• What impact will this partnership model have on Arcadia’s other projects and shareholder dilution?