Unicorn Mineral Resources has signed a share purchase agreement (SPA) to acquire a 75% stake in Q Global Copper Namibia (QGC Namibia), the holder of two exclusive prospecting licences (EPLs) in the Kalahari Copperbelt.
The licences, EPL5851 and EPL7958, cover 6,536 hectares (ha) and include the Klein Aub Copper Mine, associated surface resources and further exploration opportunities.
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The acquisition marks Unicorn’s move from exploration to potential near-term copper production.
Unicorn highlighted that 5.5 million tonnes (mt) of historical surface tailings and approximately 100,000t of high-grade slimes are included in the project area.
In-house estimates indicate that the tailings contain 0.24% copper and 7.4 grams per tonne (g/t) of silver, while slimes are estimated to hold 1.34% copper and 33.55g/t of silver.
According to the company, access to historical surface materials could reduce processing times and investment compared to greenfield projects.
Existing infrastructure at the Klein Aub site includes site access, a nearby electrical substation and water supply from historic underground mine shafts.
The mine previously produced more than 5.5mt at an average grade of 2% copper and 50g/t of silver.
The Kalahari Copperbelt has drawn significant attention from international mining companies. Major transactions involving MMG, Sandfire Resources and Rio Tinto have taken place in the region.
Unicorn said the project location provides a strategic platform for growth in southern Africa.
Under the terms agreed, Unicorn’s initial consideration totals $368,637 (R6m), with R2m payable on completion, split between cash and Unicorn shares, and R4m in deferred loan notes.
Additional deferred consideration and a payment for exploration data are included, with elements to be satisfied in cash and shares.
Funding for the acquisition will come from a previously announced $1.68m (£1.25m) unsecured loan facility provided by Electro Automation (Group).
Unicorn chairman Paddy Doherty said: “The acquisition of the Klein Aub Copper Mine represents a strategic inflection point for Unicorn. Over recent months, our board and executive team have focused on identifying high-impact assets that can rapidly transform our business profile.
“Klein Aub delivers on every metric: low capital expenditure surface resource processing, strong grade, established infrastructure and massive resource expansion potential along strike.”
