How Will Kaoko Metals Unlock Value at Arcadia’s Karibib Copper Gold Project?

Strategic Partnership Boosts Karibib Copper Gold Project

Arcadia Minerals Limited (ASX, AM7) has taken a significant step forward in its development strategy by executing a binding farm-in agreement with Perth-based Kaoko Metals Pty Ltd for its Karibib Copper Gold Project in Namibia. This four-stage earn-in deal allows Kaoko to acquire up to 100% ownership of the project entity, with Arcadia retaining an 80% interest initially.

The agreement delivers immediate value to Arcadia through a non-refundable deposit of A$35,000 and staged cash payments totaling A$400,000 over the next year. Beyond cash, Arcadia stands to gain from a net smelter royalty and milestone equity shares in Kaoko, potentially up to 2.25 million shares, aligning both parties’ incentives to unlock the project’s latent potential.

Minimal Exploration but Focused on Value-Accretive Partnerships

During the quarter ending 30 September 2025, Arcadia conducted minimal on-ground exploration, instead prioritizing strategic partnerships to fund and accelerate project development without diluting shareholders. This approach is consistent across its diversified portfolio, including the Swanson Tantalum Mine, TVC Ta-Li & Ni-PGE Projects, and the Bitterwasser Lithium Project.

At Swanson, Arcadia has attracted multiple interested parties through a competitive offtake and funding process, highlighting the project’s expansion potential beyond its original feasibility study parameters. The mine’s status as an ethical tantalum source with modest capital expenditure requirements enhances its appeal amid growing demand for conflict-free critical minerals.

Permits Renewed and Cash Position Prudently Managed

All key exploration permits for Arcadia’s projects remain in good standing, with renewals secured through mid-2027. The company continues to manage its cash position carefully, reporting a modest net cash outflow of A$58,000 for operating activities during the quarter. Arcadia also drew down on an unsecured non-recourse loan facility, adding A$150,000 to its cash reserves, and anticipates further funding through ongoing joint venture discussions and equity placements if necessary.

Arcadia’s strategic focus on non-dilutive funding mechanisms and partnerships aims to preserve shareholder value while advancing its portfolio of critical and precious metals projects in Namibia. The Karibib farm-in deal with Kaoko Metals exemplifies this approach, bringing in a credible partner with a track record of successful resource development.

Looking Ahead

With copper and gold prices currently strong, the timing of the Kaoko farm-in agreement is opportune, potentially unlocking significant value for Arcadia without burdening its balance sheet. The company’s ongoing efforts to secure strategic partners for its other projects, including tantalum, lithium, nickel, and platinum group elements, will be critical to sustaining momentum and funding exploration activities in the coming quarters.