Regulatory Hurdles Ahead for Midas Minerals’ Ambitious Namibia Expansion
Midas Minerals has agreed to acquire the high-grade Otavi Copper Project in Namibia from Nexa Resources, backed by a $6.5 million capital raise to accelerate exploration and resource definition. The company also advances its South Otavi and Western Australian projects, positioning for significant growth.
- Agreement to acquire Otavi Copper Project from Nexa Resources
- Strong historical drill results with high-grade copper and silver intercepts
- Option secured over South Otavi Project with promising copper and gold mineralisation
- Successful $6.5 million placement to fund acquisitions and exploration
- Key board appointments to support growth and operational execution
Transformational Acquisition in Namibia
Midas Minerals Limited has taken a major step forward in its growth strategy by agreeing to acquire the Otavi Copper Project in Namibia from global base metals producer Nexa Resources. Covering approximately 1,776 square kilometres near Otavi town, this project boasts high-grade copper deposits with historical drill intercepts such as 17.2 metres at 7.24% copper and 144.4 grams per tonne silver. The acquisition deal includes staged payments totaling US$10 million and a 1% net smelter return royalty, underscoring the project's value and Midas’ commitment to advancing it.
Exploration Upside and Strategic Location
Only about 36% of the Otavi tenure has seen modern exploration, leaving significant untapped potential. The project benefits from excellent infrastructure, including proximity to the Tsumeb copper smelter and the Walvis Bay deepwater port. Midas plans to immediately commence resource definition drilling on known deposits like T13 and Deblin, alongside regional exploration targeting multiple compelling prospects such as Hartebeespoort and Driekoppies.
South Otavi and Australian Projects Progress
In addition to Otavi, Midas secured an option over the South Otavi Project, which has revealed widespread copper mineralisation over a 2-kilometre strike and significant gold anomalies. Meanwhile, in Western Australia, exploration at the Challa and Newington projects continues to yield promising geochemical results, including anomalous gold and platinum group elements, setting the stage for upcoming drill programs.
Capital Raise and Corporate Strengthening
To fund these initiatives, Midas successfully completed a $6.5 million placement at $0.15 per share, providing the financial firepower to advance the Otavi acquisition and exploration activities. The company also bolstered its leadership team with the appointment of Michael Bohm, a seasoned mining executive, as Non-Executive Director, and Ryan Sebbes as Joint Company Secretary, enhancing governance and operational expertise.
Looking Ahead
With ministerial approvals pending for the Otavi acquisition, Midas is actively preparing for drilling campaigns and building a local technical team in Namibia. The combination of high-grade historical results, extensive exploration upside, and strengthened corporate resources positions Midas Minerals for a potentially transformative phase in its development as a copper and precious metals explorer.
Bottom Line?
Midas Minerals’ strategic acquisition and capital raise set the stage for a pivotal exploration phase, with market eyes on regulatory approvals and drilling outcomes.
Questions in the middle?
- When will ministerial approval for the Otavi acquisition be finalized?
- How will upcoming drilling results at T13 and Deblin impact resource estimates?
- What is the potential scale and grade of mineralisation at South Otavi and regional targets?
