Unicorn Mineral Resources has fully drawn a £1.25 million unsecured loan facility to fund its proposed acquisition of the Klein Aub Copper Mine and begin technical and development work on the historic Namibian operation.
The London-listed company said the funding, provided by Electro Automation (Group) Limited, will fund the acquisition, initial development and preparatory work at Klein Aub, and the establishment of an operational presence in Namibia.
Unicorn chairman Paddy Doherty controls Electro Automation, making the financing a related-party arrangement.
The drawdown follows Unicorn’s August announcement of the £1.25 million facility and its more recent signing of documentation relating to the acquisition of Klein Aub.
The company said the loan is unsecured, meaning it has not granted security over its assets.
Part of the funding will be directed towards technical, metallurgical and mine development work as Unicorn assesses plans to bring Klein Aub back into operation.
The company is evaluating the historical mine workings, mineralised material and associated tailings as part of plans to establish what it says could become a viable copper mining and processing operation.
Some of the loan will also provide general working capital for Unicorn’s activities in Namibia and Ireland.
Unicorn chief financial officer John O’Connor said the drawdown gives the company funding to continue work on the transaction while preparing the technical, operational and management resources needed for the project.
“The full drawdown of the £1.25 million unsecured Facility provides Unicorn with an important source of capital at a critical stage in the Company’s development,” O’Connor said.
He said the immediate priority after signing the acquisition documentation was to progress the transaction and prepare the resources needed to advance Klein Aub.
“We are increasingly focused on transitioning Unicorn towards becoming an operating mining company, and Klein Aub represents a significant opportunity to establish a substantial revenue producing copper project in Namibia,” he said.
Despite the funding drawdown and signing of acquisition documentation, Unicorn has not yet described the Klein Aub transaction as completed.
The company said the new capital will help it progress towards completion of the acquisition and the commencement of its planned activities in Namibia.
Klein Aub is being positioned as Unicorn’s principal development opportunity as the company shifts from its previous exploration focus towards mine development in Southern Africa.
Unicorn said it intends to provide further updates as the acquisition progresses and its development programme at Klein Aub gets underway.
