African Pioneer has agreed to acquire an additional 15% interest in Ongombo Project and Ongeama Project in Namibia.
The deal increases the firm’s stakes to 85% in each of the two projects, covering 202km2 of the highly prospective Matchless Copper Belt.
Under the agreement, African Pioneer, through its wholly owned subsidiary Zamcu Exploration, will purchase a 15% interest in the two projects in each of Manmar Investments One Hundred and Twenty Nine and Manmar Investments One Three Six.
African Pioneer will make aggregated cash payments of $385,984 (A$528,000) and issue 2,248,295 ordinary shares of no par value each to settle $73,103 (A$100,000).
The copper-gold exploration and development company will issue the new ordinary shares to the vendor, Namibian businessman Wilhelm Shali.
Upon completion of the transaction, Wilhelm Shali will hold a 15% interest in Namibian Projects while the remaining 85% stake will be held by African Pioneer.
African Pioneer executive chairman Colin Bird said: “The prospects of copper are strong now and into the future and our assessment is that the copper industry will return to its structure of the 1990s, where small high-grade mines existed, medium sized open pit and underground mines existed and of course, the large open pits which were the key contributors.
“With this in mind we have commenced preparations for applying for a mining licence for the Ongombo Project and have accelerated our review of the projects technical information and are pleased to have acquired a further 15% interest in our copper gold Namibian Projects which show good fundamentals.”
Described as Besshi-type volcanic-hosted massive sulphides, the two projects are located within the Kuiseb formation, which is claimed to host copper/gold mineralisation.
At the Ongombo Project, a total of four targets areas were identified with potential to extend the resource.
According to African Pioneer, the Ongeama Project has the potential to expand the deposit by undertaking geophysical surveying and further drilling.