Witvlei Sale Narrows Noronex’s Focus but Raises Execution Risks Ahead
Noronex Limited has agreed to sell its Witvlei copper project in Namibia for A$4.5 million, enabling a sharper focus on its core Kalahari Copper Belt assets and uranium exploration. The staged payment deal includes options issuance and a royalty, signaling strategic portfolio refinement.
- Sale of Witvlei Project for A$4.5 million in staged payments
- Noronex’s attributable share is A$3.6 million from the transaction
- Witvlei hosts a JORC-compliant resource of 8.8Mt at 1.28% copper
- Deal includes 20 million options issued to buyer at 2.4c strike price
- Proceeds to fund Etango North uranium drilling and strengthen balance sheet
Strategic Divestment of Witvlei Project
Noronex Limited (ASX, NRX) has announced the sale of its non-core Witvlei copper project in Namibia to Joint Era Mining Co., Limited (JEM) for a total consideration of A$4.5 million, payable in staged cash payments. Noronex’s 80% interest in the joint venture vehicle holding the asset translates to A$3.6 million in proceeds. This divestment is part of Noronex’s broader strategy to streamline its portfolio and concentrate resources on its core copper projects within the prolific Kalahari Copper Belt.
The Witvlei Project, covering approximately 29,000 hectares, represents only about 3.5% of Noronex’s extensive Namibian licence holdings. It hosts a JORC-compliant mineral resource of 8.8 million tonnes grading 1.28% copper, equating to roughly 112,500 tonnes of contained copper. Despite this, Noronex has deemed Witvlei non-core, opting to focus on higher-priority assets such as the Humpback, Damara, and Powerline projects, which are currently under active drilling programs.
Deal Structure and Considerations
The transaction includes an initial non-refundable option fee of A$200,000, followed by staged payments, A$1.25 million upon transfer of 60% ownership, a further A$1.25 million upon granting of a mining licence, and deferred consideration of A$2 million payable via a 2% net smelter return royalty once commercial production begins. Additionally, JEM will receive 20 million options to acquire Noronex shares at a strike price of 2.4 cents, reflecting confidence in Noronex’s remaining assets.
Completion is subject to a three-month exclusivity period for due diligence, regulatory and shareholder approvals, and certain corporate restructures. The company targets finalising the sale in early 2026, contingent on these conditions.
Implications for Noronex’s Growth Strategy
Noronex’s Managing Director and CEO, Victor Rajasooriar, highlighted that the sale proceeds will bolster exploration at the Etango North Uranium Project, where a maiden drilling program is slated for early 2026. The transaction also strengthens Noronex’s balance sheet, positioning the company to pursue new business development opportunities within the Kalahari Copper Belt.
Noronex maintains strategic alliances with South32 Ltd, under which South32 funds exploration at key projects in Namibia and Botswana. The divestment of Witvlei allows Noronex to sharpen its focus on these partnerships and its core copper assets, potentially accelerating resource growth and value creation.
While the Witvlei sale reduces Noronex’s footprint slightly, it aligns with a disciplined portfolio management approach, balancing capital allocation between advancing uranium prospects and high-potential copper projects.
Bottom Line?
Noronex’s Witvlei sale marks a pivotal portfolio refinement, setting the stage for focused growth in uranium and copper exploration.
Questions in the middle?
- Will JEM’s acquisition accelerate Witvlei’s development towards production?
- How will the options issuance to JEM impact Noronex’s share structure and investor sentiment?
- What progress can be expected from Noronex’s upcoming Etango North uranium drilling program?