Aldoro Resources (Aldoro) has executed a binding agreement with Logan Exploration and Investments CC and Okonde Mining and Exploration CC to acquire an 85% interest in the Kameelburg Project.
The heavy rare earth carbonatite project agreement with mineral permits EPL 7373; EPL 7372; and EPL 7895 is worth approximately N$3 million.
According to the agreed terms, Aldoro will make an initial payment of N$500,000 upon signing the agreement, payment of N$2,500,000 at completion, with an additional 500,000 fully paid Aldoro ordinary shares in its capital.Â
Aldoro Chairman Troy Flannery said the critical metals transaction is an opportunity for the company to increase its rare earth exposure in what appears to be an extremely large outcropping carbonatite deposit.Â
“We are comfortable with the project’s location in Namibia, which is ranked by the Fraser Institute as the 2nd most favourable jurisdiction (behind Morocco) on the Policy Perception Index (PPI) across the African continent,†Flannery said.Â
Aldoro is currently funded to carry out the project, which entails a number of steps, including organizing a due diligence sampling program and conducting a site visit.Â
“Set up an operating framework for Namibia, including organizing a local controlling entity, and visiting local stakeholders. Conduct a desktop study, acquire historical datasets over the whole project area,” the company said relating to the forward work program.
The Kameelburg Project is located approximately 300km north of Windhoek and 60km south-west of Otiwarongo along well-maintained bitumen roads.
Kameelburg Project is well connected with a robust road and railway infrastructure and a 220kV hydropower transmission line that passes within seven kilometres of the project.Â
The heads of agreement come at a time when Namibia has been ranked as the second most favourable jurisdiction by the Fraser Institute on the Policy Perception Index for the African continent.Â
“Historical due diligence rock chip sampling program and a grid-based rock and soil sampling program at 100m intervals returned up to 2.12% TREO in the rocks and up to 2.02% TREO in the soils,†Aldoro said.
“Further historical sampling involved a detailed 100m interval grid of rock and regolith sampling program completed over the Kameelburg Carbonatite and surrounding country rock contact with 678 rock and regolith samples collected from 339 sites.â€
Meanwhile, conditions for acquisition precedent include completion of due diligence by Aldoro on the Project and the permits to the satisfaction of Aldoro and confirmed in writing.
“The successful renewal of EPL 7373, which is currently undergoing renewal and the Parties obtaining any necessary shareholder, regulatory, governmental, or third-party consents and/or approvals (as applicable) in order to allow the Parties to complete their respective obligations under this Agreement.”Â
Additional conditions include the Permits remaining in good standing as at the date of satisfaction of the last condition.
The project currently has three exclusive Prospecting Licences, one under Okonde Mining and Exploration CC which expires on 29 July 2023 and two pending renewal under Logan Exploration and Investments CC.
Aldoro Resources Ltd is an ASX-listed mineral exploration and development company. Aldoro’s portfolio includes lithium, rubidium, and base metal projects in Western Australia.Â
“The Wyemandoo lithium-rubidium-tungsten project and the Niobe lithium-rubidium-tantalum project are the Company’s flagship projects. The Narndee Igneous Complex, which is prospective for Ni-Cu-PGE mineralisation, is one of the Company’s other projects.â€
