Ubique Minerals is set to acquire Namib Lead and Zinc Mining (Proprietary) Limited which owns the Namib Lead and Zinc Mine in Namibia.
Namibian Competition Committee approved the firm’s proposal of acquisition. The transaction was first announced May 30, 2022, when the Company signed a non-binding term sheet. On September 6, 2022, the Company announced a Share Purchase Agreement “SPA” to acquire the 90% stake in Namib Lead and Zinc Mining (Proprietary) Limited (“NLZM”).
At this stage, the proposed transaction has received all the required Namibian Government approvals and only requires internal approvals from the vendor and the Company, along with the Canadian Securities Exchange approval.
The Company expects to receive shareholder approval for the transaction at its Annual General, and Special Meeting on December 30, 2022; having already received firm indications of over 60% of votes in favor of the transaction from the largest shareholders and directors of the company. The transaction is therefore expected to close within Q1 2023, and the Company therefore has the potential to commence production of Zinc-Lead-Silver concentrate in the second half of the year 2023.
Vilhjalmur Thor Vilhjalmsson CEO and Director commented “This is another milestone in the journey of making the Company a fully operating mining outfit. The teams from the vendor and the Company have worked diligently reaching each milestone. We look forward to concluding the transaction and get hands on in Namibia.”
The Namib Lead and Zinc Mine (“Project”) is located near Swakopmund, Namibia, was built in 2018-2019 and operated until April 2020. The Project was put into care and maintenance due to health and safety concerns related to the Covid-19 pandemic as well as the closure of the border with South Africa, from where the Project sourced key supplies. Since April 2020, the Project has been maintained in a ready-to-restart status, including maintaining access to the mine and intermittent functional checks of process plant components.
NLZM is the holder of mining license ML185 and two exclusive prospective licenses, EPL 2902 and EPL 5075, that surround the Project’s mine site. The Project’s mine and processing facilities consist of an underground mine developed by trackless decline and sub-level stoping to yield 500 tonnes of ore per day.
The ore is fed through a conventional crushing, grinding, and floatation plant to produce zinc and lead/silver concentrates which are filtered and dried on site before trucking the concentrate 70 kms to a deep water port with container handling facilities at Walvis Bay, from where the concentrate is shipped to international custom smelters. Fresh water supply is available from the desalination facility serving all mines and communities in the region and electricity is by connection to the national power grid.
The Mineral Resource Estimate was prepared by CSA Global, in August 2017 utilizing the JORC 2012 edition and was an update of a prior Ore Reserves Estimate prepared by Bara Consulting Ltd., in 2012.