Australia-based Aldoro Resources has signed a binding heads of agreement to acquire an 85% stake in mineral permits EPL 7373; EPL 7372; and EPL 7895, collectively known as the Kameelburg Project, in Namibia.

The agreement was signed with Logan Exploration and Investments CC and Okonde Mining and Exploration CC.

Aldoro Resources chairman Troy Flannery said the critical metals transaction would increase the company’s rare earths exposure in what it claims to be an extremely large outcropping carbonatite deposit.

Flannery said: “We are comfortable with the project’s location in Namibia, which is ranked by the Fraser Institute as the second most favourable jurisdiction (behind Morocco) on the Policy Perception Index (PPI) across the African continent.”

According to the agreed terms, Aldoro will make an initial payment of A$41,000 upon signing the agreement, A$201,000 at completion, as well as issue 500,000 fully paid Aldoro ordinary shares.

Located 300km north of Windhoek and in the northern Central Damara Orogenic Belt, the Kameelburg Project comprises the Cretaceous Kameelburg Carbonatite plug and associated radial dykes that intrude precursor syenites in the older host Neoproterozoic marbles and schists.

In a press statement, Aldoro said: “Initial mineral investigations were conducted in the late 1960s-early 1970s by Amcor and the project lay dormant until 2012-2015 when it was investigated by a private company for REE and phosphates but low commodity prices during this period ended investigations.”

Upon deal completion, Aldoro plans to organise a due diligence sampling programme at the project.

The firm will also carry out a desktop study and acquire historical datasets over the project area, in addition to launching an operating framework for Namibia.