Arcadia Advances Karibib Drilling; Swanson Funding Race Heats Up

Exploration Momentum at Karibib

Arcadia Minerals Limited (ASX: AM7) has outlined a clear path forward for its Karibib Copper Gold Project in Namibia, announcing plans for a 1,000-metre reverse circulation (RC) drilling program. This campaign, comprising approximately 15 holes, aims to test multiple skarn-type mineralised calc-silicate outcrops and induced polarisation (IP) anomalies in the Gamikaubmund area. The targets were identified through a detailed reinterpretation of historical geophysical and geochemical data, supported by structural mapping, underscoring the company’s methodical approach to unlocking latent value in this highly prospective Damara Belt region.

Karibib’s proximity to significant regional deposits, such as the Navachab Gold Mine and Osino Resources’ Twin Hills Deposit (recently acquired for US$272 million), adds strategic context to Arcadia’s exploration ambitions. The company’s emphasis on modern exploration techniques reflects a broader industry trend of leveraging advanced data analytics to refine target selection and improve discovery potential.

Swanson Tantalum Mine Funding Race

Meanwhile, the Swanson Tantalum Mine is at a critical juncture. After terminating a funding agreement with HeBei Xinjian Construction CC due to non-payment, Arcadia has initiated a competitive bidding process to secure the remaining construction funding estimated at around US$9.8 million. The company has finalized an Information Memorandum and is actively engaging with multiple interested parties, including site visits and data-room clarifications. Initial proposals have been received, signaling robust market interest in this ethically sourced tantalum project, which benefits from a completed bankable feasibility study demonstrating strong financial outcomes.

Notably, core equipment delivery remains on hold pending new funding, but suppliers have agreed to retain the Multi Gravity Separators and Spiral Circuits for Arcadia. The company is confident that ancillary plant equipment can be sourced competitively within budget, reflecting prudent cost management amid funding uncertainties.

Strategic Focus and Portfolio Management

Arcadia’s approach to its broader portfolio is marked by selective prioritization and strategic partnerships. The Bitterwasser Lithium Project, encompassing both Lithium-In-Clays and Lithium Brines, saw minimal activity this quarter as the company aligns with subdued lithium market sentiment. Nonetheless, discussions with potential strategic equity partners continue, reflecting a readiness to capitalize on market recovery.

Similarly, the TVC Projects, which include tantalum, lithium, nickel, and platinum group element prospects, remain under consideration for joint ventures. Interest from parties involved in the Swanson bidding process suggests potential synergies that could enhance project value and operational efficiencies.

Financial Discipline Amid Exploration

Financially, Arcadia is exercising austerity, with exploration and development expenditures totaling A$36,000 for the quarter and no mining production costs incurred. The company ended the period with a modest cash balance of A$2,000, underscoring the urgency of securing new funding. Related party payments were limited to A$8,999 for operational expenses in Namibia, with no executive director fees paid during the quarter.

Arcadia’s capital structure remains stable, with 117.4 million CDIs and 8 million options on issue. The company’s strategy to pursue non-dilutive funding through joint ventures and strategic equity investments aims to preserve shareholder value while advancing its diverse project portfolio.

Looking Ahead

Arcadia’s participation in the Investing in African Mining Indaba 2025 reflects its commitment to engaging with the investment community and potential partners. As the company prepares to execute its Karibib drilling program and progresses the Swanson funding process, the coming months will be pivotal in determining the trajectory of its Namibian assets.