C29 Metals is making a bold entry into Namibia’s Tier 1 Otavi Copper Belt through an 80% acquisition of a large copper-gold portfolio, backed by a $4.7 million capital raise and promising high-grade drill results.
- Acquisition covers 1,074 km2 across three Namibian projects
- High-grade copper confirmed at Kopermyn with mineralisation open along strike
- Placement raises $4.7 million at 25% discount to support exploration
- Experienced geologist Rod Watt appointed Exploration Manager
- Consideration includes cash, shares, performance rights, and 1.5% royalty
Strategic Entry into Namibia’s Premier Copper Belt
C29 Metals (ASX:C29) is pivoting decisively into Africa’s copper-gold heartland with a binding deal to acquire an 80% interest in a sprawling Namibian portfolio spanning roughly 1,074 km2. The acquisition, with an option to increase to 90%, includes the advanced Kopermyn Copper Project situated in the Tier 1 Otavi Copper Belt; a jurisdiction renowned for its mining pedigree and proximity to established infrastructure like the Tsumeb copper smelter.
The portfolio’s scale and location position C29 Metals to tap into one of the world’s most prospective copper and gold belts. The Otavi Copper Belt has a history of producing high-grade copper deposits, and the Kopermyn project alone delivered impressive drill intercepts in 2022, including 6 metres at 4.79% copper starting from 27 metres depth. Mineralisation remains open both along strike and at depth, hinting at substantial exploration upside.
Capital Raise and Funding Structure
Backing the acquisition is a firm commitment to raise A$4.7 million through a two-tranche placement priced at $0.024 per share, representing a 25% discount to the recent trading price. This capital injection will fund exploration activities across both the newly acquired Namibian assets and the company’s existing Australian projects, as well as cover acquisition costs and working capital needs.
The placement includes participation from institutional and sophisticated investors, with a $150,000 convertible loan from a director set to convert at the placement price pending shareholder approval. This follows a previous director loan arrangement, reflecting continuity in management’s financial backing. The company has engaged Lynx Advisors and BW Equities as joint lead managers for the raise.
Exploration Upside and Project Details
The Kopermyn project is the crown jewel of the acquisition, featuring historical open-pit workings and tailings alongside recent reverse circulation drilling that confirmed high-grade copper mineralisation close to surface. The drilling program, completed in 2022, intercepted multiple zones exceeding 1.5% copper, with standout results like 12m at 2.08% and 15m at 1.78% copper. Geological interpretation points to a stratabound sediment-hosted copper system controlled by favorable stratigraphic horizons, with a largely untested 10km basement-cover contact offering significant exploration potential.
Alongside Kopermyn, C29 gains exposure to two gold projects within the prolific Damara Gold Belt: Twin Hills East and Navachab East. Both are strategically located near operating mines and advanced gold projects, offering optionality and diversification within the portfolio. The Twin Hills East project lies adjacent to Antler Gold’s Onkoshi project, while Navachab East borders Namibia’s longest-operating Navachab Gold Mine, providing access to infrastructure and near-mine exploration potential.
Management Changes and Acquisition Terms
To steer this new chapter, C29 has appointed Rod Watt as Exploration Manager. Watt brings over 35 years of experience in copper-gold exploration and project development, a crucial asset given the scale and complexity of the Namibian projects. His appointment follows the resignation of the previous Exploration Manager and Chief Geoscientist, Robert Stuart.
The acquisition consideration is a mix of cash payments, shares, and performance rights tied to exploration milestones, including the drilling of multiple high-grade copper intervals and the achievement of JORC Inferred Resource targets. The vendors will also receive a 1.5% net smelter royalty on minerals produced from the projects. Notably, the consideration shares and certain deferred securities are escrowed until tenement granting, with cancellation clauses if permits are delayed beyond 12 months.
Permitting and Next Steps
Tenement granting and drill permitting are progressing well, with drilling expected to commence shortly after permits are secured, potentially as soon as May. The drilling will target extensions of known mineralisation along strike and at depth, though the company cautions these targets remain conceptual with no guaranteed outcomes.
This move into Namibia builds on C29 Metals’ recent strategic shifts, including securing a director loan earlier this year and advancing drilling plans at its Samsons Tank project in Australia, reflecting a broader strategy to diversify and expand its copper-gold footprint globally. The Namibian acquisition was facilitated through The Minexchange, a global mining asset marketplace, underscoring the company’s proactive approach to sourcing high-quality projects.
With Namibia’s stable, mining-friendly environment, established infrastructure, and transparent regulatory framework, C29’s acquisition offers a compelling platform for copper and gold exploration at a time when copper’s role in the energy transition is under the spotlight and gold prices remain elevated.
Bottom Line?
C29 Metals’ Namibian acquisition and capital raise mark a significant pivot into Tier 1 copper-gold assets, but the success of exploration and permitting will be critical to unlocking value.
Questions in the middle?
- Will the upcoming drilling at Kopermyn confirm extensions of high-grade copper mineralisation?
- How quickly will the Namibian tenements be granted and permits secured to start exploration?
- What impact will the performance rights and royalty structure have on shareholder value if milestones are met?