Namibian-based Chinese company Hebei Xinjian Construction has paid US$2,1 million as part of a US$7 million Swanson Mining Project construction funding deal with Arcadia Minerals.
The companies signed the deal in May 2023, under which Hebei Construction will construct a plant, build infrastructure, execute mine development, and commission a Multi-Gravity Separation plant (MGS).
Upon fulfilling its obligations, HeBei will receive a 38% equity interest in Arcadia Minerals subsidiary Orange River Pegmatite (Pty) Ltd (ORP).
Arcadia’s 80% owned Orange River Pegmatite (Pty) Ltd.
The Orange River Pegmatite owns the Swanson Project’s mining licence 223, which is located some 15km north of the Orange River in the Karas Region.
In a statement Friday, Arcadia Minerals said some pieces of mining equipment which HeBei Construction bought were delivered, with the remainder expected in October 2024.
Arcadia said Hebei bought the MGS, spirals and concentrators for US$645,450 from England, South Africa, and China.
Hebei also bought a crushing and milling jaw crusher, cone crusher, and vibrating screens lin-mining machinery for US$1,09m from China.
There are also the slurry pumps bought from China for US$143 800,
vacuum filter and mixer from China for US$59 500, conveyor belts and electronic belt scale from China for US$103 400 and drill rig from China for US$ 98 000.
Construction of the 21km water pipeline and installation of the 25km powerline for NamPower’s electricity provision is set to commence in the second quarter of 2024.
Preparatory work for the 13 km Services Servitude Road has commenced, and construction is expected to begin by the second quarter of 2024.
Site preparation has started at the Swanson Plant, and civil works are expected to start in the first quarter of 2024.
Swanson’s revised JORC Mineral Resource is 2.59Mt at an average grade of 486g/t Ta2O5, 73g/t Nb2O5 and 0.15% Li2O derived from 52 drill holes drilled over 10 pegmatites.
HeBei Xinjian Construction was established in August 2013 in Namibia, but its parent company, HeBei Xinjian Construction Group, was founded in July 1952.
The companies’ core business has been housing construction, decoration, industrial and civil equipment installation, plumbing, electrical and instrument installation, real estate development, overseas project contracting, labour export, import, and export trading.
