Keras Resources plans to target small-scale copper oxide production from its proposed Namibian portfolio before committing more capital to exploring deeper mineralisation across its 6,214-hectare position in the Kaoko Copper Belt.
The London-listed company, which is seeking shareholder approval to acquire an initial 51% of Cornerstone Mining (Pty) Ltd, said it will use Cornerstone’s partnerships with Namibian mining claim holders to pursue near-surface copper opportunities that can support staged development.
Keras will simultaneously explore the wider licence package for potentially larger copper systems, with investment decisions to be made as technical results become available.
“Our strategy is to build on that foundation, initially pursuing opportunities for small-scale oxide production through Cornerstone’s partnerships with Namibian Mining Claim holders, while exploring the wider land package and deeper mineralisation,” the company said in interim results released this week.
“Capital will be deployed against technical results, with each phase of work designed to provide the information required to determine the appropriate level of investment in the next.”
The approach provides greater detail on how Keras intends to develop the Namibian assets after announcing last month that it had agreed to acquire control of Cornerstone.
Keras has agreed to acquire 51% of Cornerstone from Swatech Mineral Processors (Pty) Ltd for US$1 million in cash and 18 million Keras shares.
It will have an option to acquire another 19% for US$1 million, potentially increasing its ownership to 70%.
Up to another 46 million Keras shares could be issued to the seller if agreed production and resource milestones are achieved, while Swatech will retain a 5% gross revenue royalty capped at US$5 million.
The transaction remains conditional on shareholder approval and other conditions.
Keras has also committed to provide Cornerstone with a development loan facility of up to US$2 million.
The money is intended to be provided in stages to expand exploration, undertake resource-definition work and advance the Namibian projects.
Cornerstone’s portfolio covers 6,214 hectares of contiguous ground in north-western Namibia’s Kaoko Copper Belt and includes EPL4305, EPL10499 and EPL10767.
The company said the portfolio combines near-surface copper oxide targets with the potential for larger mineralised systems across the wider licence position.
Historical exploration has included diamond drilling, geological mapping, geophysical work, soil sampling and reconnaissance.
Keras also highlighted a historical bulk sample of approximately 15,000 tonnes from EPL4305 as part of the technical foundation it intends to build on.
The company has not yet declared a current mineral resource for the portfolio in the interim report, meaning further exploration and resource-definition work will be required before it can establish the scale of the mineralisation.
The proposed Cornerstone acquisition is part of a wider restructuring that will see Keras dispose of its US phosphate operations and refocus the company on copper exploration and development in Namibia.
Keras has agreed to sell its US phosphate business, which owns the Diamond Creek mine in Utah, for US$1 million in cash.
The transaction will also cancel about £820,000 of convertible loan principal, together with related accrued interest.
Keras will retain an uncapped royalty of US$10 per long ton on qualifying future production from Diamond Creek.
The company said the disposal, together with its fundraising, is expected to leave it with no debt and approximately £1.83 million in cash once the transactions are completed.
Keras has conditionally raised to £1.8 million as part of the restructuring.
Chief executive Russell Lamming said the transactions are intended to return Keras’ operational focus to Africa and establish Namibia as its principal growth platform.
The company said increasing interest in the Kaoko Copper Belt, combined with Cornerstone’s land position and relationships with local mining claim holders, provided the foundation for its new copper strategy.
The shift to Namibia is significant enough that Keras is proposing to change its name to Okopa plc.
The name change is subject to shareholder approval at the company’s annual general meeting on 12 October.
Keras said the new identity would reflect its transition from the US phosphate business to a company focused on copper exploration and development in Namibia.
The Cornerstone acquisition, disposal of the US business, the second tranche of the fundraising, and the proposed name change all require shareholder approval.
If approved, Keras expects to emerge from the restructuring with control of Cornerstone, access to the Kaoko copper portfolio, approximately £1.83 million in cash and no debt.
The company would then begin a staged programme to test whether near-surface copper oxide mineralisation can support early production while exploration continues across the wider Kaoko land package.
