A BHP Billiton spin-out company, South32, has entered Namibia through an earn-in agreement and strategic alliance with Noronex Limited.
Noronex’s exploration package covers over 8,500 km2 within the highly prospective but relatively under-explored Kalahari Copper Belt in the Omaheke region.
The earn-in agreement covers EPL 8655, 8656, 8664, 8671, 8672, 8964, and applications 9551, 9952, 9932, and 9971, held by Noronex’s subsidiary, Noronex Exploration and Mining Company.
South32 will earn a 60% interest in Noronex Exploration and Mining Company after paying A$15 million (about N$184 million) to fund exploration over five years at Noronex’s Humpback-Damara Project.
The minimum exploration expenditure before any withdrawal by South32 is A$3 million (N$36.8 million).
A first-year drilling program will begin in October, initially at Fiesta and then at the Damara Zone, with a detailed in-fill gravity survey over four main project targets.
Noronex will manage the work programs and charge a 7.5% operator fee.
The parties will form a technical committee to oversee and provide guidance regarding the exploration programs.
According to the strategic alliance agreement, Noronex will generate early-stage exploration opportunities primarily prospective for copper in Namibia.
South32 will give Noronex generative funding of A$200,000 (N$2,454.000) annually to generate copper-dominant prospective projects in Namibia.
Once Noronex has either secured the mineral rights or has engaged with the owner or holder of the exploration rights and is well advanced in securing the exploration rights, Noronex will exclusively offer the opportunity to South32 on the agreed terms and conditions.
Should South32 accept two or more exploration opportunities in a year, an A$200,000 (N$2,454.000) bonus generation fee is payable.
The agreement will endure until December 2026.
Noronex executive director James Thompson said this is a transformational development for Noronex, which represents a strong validation of the exciting portfolio of their copper projects.
“The technical, financial, and strategic support from South32 will allow us to search and drill across the impressive portfolio we have developed in the Kalahari Copper Belt,” Thompson said.
He added that the strategic alliance is a testament to the experienced team and infrastructure our technical director, Bruce Hooper, and his team have set up in the country.
According to Thompson, it will allow Noronex to target exciting new copper and base metal opportunities across this highly prospective belt.”
Hooper said the Kalahari Copper Belt is one of the most under-explored copper provinces and presents huge opportunities for large-scale discoveries and the development of significant new mines, as seen with the Khoemacau-Zone 5 Copper Project, recently acquired by MMG and Sandfire Resources’ newly commissioned Motheo Copper Project in Botswana.
“Noronex has assembled an enviable position in this emerging district along strike from these major deposits, and we are delighted to partner with South32 and seek to unlock the full potential of our portfolio,” Hoopers said.
South32 produces bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, and manganese from its operations in Australia, Southern Africa, and South America.
