Unicorn Mineral Resources has taken a major step towards acquiring Namibia’s historic Klein Aub Copper Mine after securing a £1.25 million (about N$30 million) loan facility from its chairman, Paddy Doherty, to finance the transaction and advance the company’s operations in Namibia.
The London-listed explorer announced that it had agreed the principal terms of a one–year unsecured loan facility, with the funding earmarked primarily for the proposed acquisition of Klein Aub, associated transaction costs, working capital requirements and operational expenditure across its Namibian and Irish assets.
The financing moves Unicorn closer to completing its entry into one of Namibia’s best-known copper projects. However, the facility remains subject to several conditions, including the signing of formal loan documentation, the execution of the sale-and-purchase agreements for Klein Aub, and the receipt of any required regulatory approvals.
The company expects those conditions to be satisfied during July 2026.
The loan demonstrates growing confidence within Unicorn’s leadership in the strategic importance of Klein Aub. Rather than seeking external debt or equity financing, the company has secured funding directly from its chairman, allowing it to move quickly towards completing the acquisition.
Under the agreed terms, the facility bears interest at 10% per annum, payable at maturity after one year. Unicorn will also pay a 3% establishment fee, equivalent to £37,500, upon maturity of the facility.
The loan is unsecured, requires a single drawdown and contains no conversion rights, meaning it cannot be converted into company shares.
Because the lender is Unicorn’s chairman and a significant shareholder, the transaction constitutes a related-party transaction under the UK Listing Rules.
The company’s independent directors said they had reviewed the terms of the facility and concluded that they are fair and reasonable for shareholders.
For Unicorn, the financing represents another important milestone in its strategy to establish a significant base metals business in Namibia.
The proposed acquisition centres on the Klein Aub Copper Mine, one of Namibia’s historic copper producers located about 60 kilometres southwest of Rehoboth. Mining at Klein Aub dates back to the 1960s, with the underground operation producing copper concentrate for more than two decades before closing in 1987 following a collapse in global copper prices rather than depletion of the orebody.
Although mining ceased nearly four decades ago, Klein Aub has remained an attractive redevelopment opportunity because of its established infrastructure, known mineral resource and extensive historical exploration database. Unicorn has previously indicated that, in addition to the underground resource, the project hosts significant tailings that could enable early-stage production while studies continue into restarting underground mining.
The acquisition reflects renewed investor interest in Namibia’s copper sector, where higher long-term demand, driven by electrification, renewable energy infrastructure, and electric vehicles, has encouraged companies to revisit historic mines that were uneconomic during previous commodity cycles.
If completed, Klein Aub would become Unicorn’s flagship Namibian asset and form part of the company’s strategy to build a portfolio of copper, zinc, lead and silver projects.
The latest funding announcement indicates that the acquisition has entered its final stages. Once the remaining legal documentation is completed and regulatory approvals are obtained, Unicorn is expected to complete the purchase and begin advancing plans to redevelop one of Namibia’s best-known historic copper mines.
