You have news tips, feel free to contact us via email

London-based Katoro Gold Ventures into Iron Ore in Namibia

By: Wonder Guchu

Katoro Gold has entered into a binding conditional agreement to form a 50/50 unincorporated joint venture with Trans Namibia Mining and Minerals to undertake exploration/development activities on an iron ore project in Namibia.

Until last week when the two companies signed the joint venture, Katoro Gold had two gold projects in South Africa and Tanzania.

London-based Katoro Gold is a strategic and precious minerals exploration and development company listed on the London Stock Exchange.

John Cohen is listed on LinkedIn as the Trans Namibia Mining and Minerals chief executive officer since January 2015, while Sinovia Dunn is listed as the business owner of Trans Namibia Mining and Minerals since Jan 2019.

The Trans Namibia Mining and Minerals (TNMM) owns four farms known as Naruchas, Kanubeb Wes, Kanubeb Oos and Kanubeb in the Hardap region.

TNMM also holds the associated prospecting licenses and is the current operator of the project and holder of the rights over 100% of the project.

The agreement provides Katoro with a pre-emptive right to acquire up to 60% of the total issued share capital of TNMM and the same percentage of all claims on the shareholder loan account against TNMM should the shareholders of TNMM decide to sell their interest.

The joint venture partners plan to continue exploring and potentially developing iron ore deposits and other minerals from the four farms.

Most of the exploration work undertaken has been on an iron ore project based on the Naruchas farm, believed to be for medium-to high-grade sedimentary iron ore.

An independent consultant to TNMM, Sharon Kaviua, completed a historic estimate of mineral resources at Naruchas in October 2013.

Kaviua’s findings are contained in a Mineral Resource and Ore Reserve Statement report.

Kaviua compiled the historic estimates according to the South African Mineral Reporting Codes (SAMREC).

Under the terms of the Agreement, Katoro is required to procure financing for the full funding requirements of the project and partners, including the construction and commissioning of a beneficiation plant and auxiliary operations, should the continued development and exploration work provide positive results.

The agreement sets the target production capacity of three metric Tonnes per annum (Mtpa) once all development work is completed.

“Pursuant to the agreement, once the only remaining conditions have been met, being the approval of a work programme and associated budget to advance the project to bankability status, the JV Partners will form the JV, which is intended to be an unincorporated JV to be held 50% by the Company and 50% by TNMM,” the agreement dated 20 September 2022 says.

TNMM will be required to make all technical data relating to the properties and rights available, including but not limited to all geological data, feasibility studies, and geophysical and geochemical data, in its possession.

TNMM will provide the JV with customary warranties and undertakings concerning ownership of the properties and rights.

The joint venture will continue indefinitely for as long as Katoro complies with its obligations under the agreement, including sourcing funding for the project’s development.

Katoro Gold’s executive chairperson Louis Coetzee said the joint venture represents an exciting investment opportunity for the company with the possibility of near-term value uplift.

“Our initial objective is to rapidly determine the work programme and budget required to advance the project to bankability status. Based on the preliminary evaluation and review of the substantial amount of historic work done on the project, we believe this can be achieved within a relatively short timeframe and with minimal rework and/or additional work,” Coetzee said.

He added that a significant number of the required licenses and permits are also already in place, making achieving industry-standard bankability significantly easier and quicker.

“The JV also includes exploration rights covering many fascinating copper anomalies. We will be looking at getting an extensive copper exploration programme going in parallel to work on the iron Project. Previous work undertaken by, amongst others, Mesars Universal Ores (Pty) Ltd, Kaniganas Mining Company (Carbonado Investments (Pty) Ltd), Newmont South Africa Limited and Falconbridge of South West Africa (FSWA), and ActLabs, will assist the company in focusing its near term development programme.

“We look forward to working with TNMM to bring this project to fruition and will provide further market updates shortly to keep shareholders reasonably informed of our progress.”


Wonder Guchu

Related Posts

Read Also ... x