Funding Deal and Rig Purchase Could Reshape Aldoro’s Kameelburg Prospects

Strategic Expansion of Drilling Program

Aldoro Resources Ltd (ASX, ARN) has announced a significant expansion of its Phase II drilling program at the Kameelburg Rare Earth Elements (REE) and Niobium Project in Namibia. The company plans to add an additional 11,000 meters of appraisal and metallurgical diamond drilling, bringing the total program to over 20,000 meters. This expansion underscores Aldoro’s confidence in the project's potential and its commitment to advancing resource definition and metallurgical understanding.

The drilling will focus on extending known mineralisation laterally and at depth, targeting the high-grade core of the Kameelburg carbonatite complex. This approach aims to enhance the JORC resource estimate and provide bulk samples for beneficiation and pilot-scale testing, critical steps towards feasibility and development.

Acquisition of Advanced Drilling Rig

Central to this expansion is Aldoro’s acquisition of a Diamec Smart 8 fully hydraulic diamond drilling rig, capable of drilling to depths exceeding 1,500 meters per hole. Valued at A$1.5 million, the rig will be settled through the issuance of 3.75 million Aldoro shares, subject to shareholder approval. Ownership of this rig establishes Aldoro’s in-country drilling capability, offering operational efficiencies and reducing reliance on third-party contractors.

This move is expected to streamline metallurgical core sampling, bypassing complex environmental approvals and accelerating the pathway to pilot testing and feasibility studies. The rig acquisition also signals Aldoro’s strategic intent to control key aspects of its exploration and development activities.

Innovative Drill-for-Equity Funding Agreement

Aldoro has entered into a drill-for-equity agreement with AMW Mining Pte Ltd, securing drilling services at a 50% discount to Namibian market rates. The agreement includes no mobilisation, standby, or demobilisation costs, further enhancing cost efficiency. Initial drilling costs of up to A$600,000 will be settled through the issuance of up to 1.5 million shares at $0.40 per share, representing an 8% discount to the closing price.

Subsequent payments may be made in shares at a 15% discount to the 20-day volume-weighted average price, subject to shareholder approval. This funding mechanism preserves Aldoro’s cash resources while aligning incentives with its drilling partner, fostering a collaborative approach to resource development.

Implications for Project Development

Chairperson Quinn Li highlighted that the expanded drilling program and strategic partnerships position Aldoro as a leader in Namibia’s emerging critical minerals province. The metallurgical core retrieval will enable beneficiation and bench testing in early 2026, complementing ongoing metallurgical studies. These activities are foundational for advancing the Kameelburg project towards feasibility and eventual development.

With the rig acquisition and drill-for-equity agreement, Aldoro has effectively removed funding uncertainties and secured a major operational advantage. The company’s focus on rare earth elements and niobium aligns with growing global demand for critical minerals essential to clean energy and advanced technologies.