AuryxGold Namibia said it plans to revive the Otjikoto gold mine located in Namibia.

The company intends to spend nearly N$300m ($38.56m) on exploration and development of the project.

AuryxGold Namibia is a joint venture between Canadian group B2Gold and local empowerment group EVI Mining. EVI Mining holds an 8% stake in AuryxGold Namibia.

The company applied for a mining licence in September 2011 and is expected to receive approval by year-end, according B2Gold president and chief executive officer Clive Johnson.

Production is expected to commence in 2014.

The company has held negotiations with Epangelo Mining, to divest interest in Otjikoto.

AllAfrica quoted Johnson as saying: "We would like to work with Epangelo if it makes if it makes business sense. But it is difficult to commit unless we know what the rules are."

Johnson continued: "B2Gold believes in developing projects that are sustainable and in a transparent manner with input from all stakeholders".

Currently, the company has a market capitalisation of C$1.5bn ($1.49bn) and plans to produce 100,000 ounces of gold at Otjikoto and estimates that the mine has a life of ten years.

The company said that the mine has an indicated resource of about 25.1 million t containing 1.16 million oz of gold.

The inferred resource is about 15.6 million t with 680,000 oz of gold.

AllAfrica reported that B2Gold also runs gold mines in Nicaragua, Colombia and Uruguay.