General Copper Gold has signed an option agreement with Frantier Mining Namibia to secure an 80% interest in an exclusive prospecting licence covering approximately 48,500 hectares of land in Namibia.
Frantier Mining Namibia is a private arm’s length company established under Namibian law (the Optionor).
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The licence for the property is situated in the Otjozondjupa region of central-northern Namibia, specifically in the eastern Northern Zone of the Damara Mobile Belt.
This area is of economic importance as the Damara Mobile Belt contains significant deposits of tin, uranium, gold and base metals.
Positioned between Otjiwarongo to the south and Otavi to the north, the property is near the Okoruso (Fluorspar) and Otjikoto (Gold) mining operations.
It benefits from excellent infrastructure, being located on the main highway into southern Africa, with the national railway running parallel to it, and with power supplies supporting the nearby towns and mining activities.
To maintain the agreement, General Copper Gold must meet specific conditions after completing standard due diligence and obtaining all necessary regulatory and third-party approvals, including those from the Canadian Securities Exchange and any relevant securities commissions.
Upon closing, the company is required to make a cash payment of $60,000 (C$81,572) to the Optionor.
In the first year following the closing date, the company must spend at least $150,000 on exploration activities at the property to acquire an initial 40% interest in the licence and the property.
Additionally, in the second year, General Copper Gold is obligated to invest a minimum of $300,000 in exploration at the property to secure an additional 40% interest in the licence and the property.
The company is planning a private placement to raise at least C$1.5m, selling units at C$0.05 each, consisting of one common share and a half-share purchase warrant.
This move is crucial to support its option exercise under the agreement and fund exploration at the Topley Richfield property in British Columbia, alongside general corporate activities.
The financing process is subject to a 6% cash finder’s fee in accordance with regulations.
Completion of these plans requires all necessary regulatory approvals, and the closing for the option exercise is anticipated within five business days following approval receipt and private placement completion.
If the company fails to complete the private placement and secure all required approvals, it will be unable to fulfill its obligations under the agreement and consequently unable to exercise the option.
