London-listed Serval Resources plans to spend US$7.1 million on copper exploration in Namibia’s Kaoko Basin, including a 20,000-metre drilling programme expected to begin before the end of 2026, as the company seeks to raise at least £6.5 million (US$8.5 million) from investors.
The company announced on 14 October that US$4 million would be allocated to a drilling contract with Capital Drilling, while another US$3.1 million would finance geological exploration and other activities in Namibia.
The proposed expenditure makes Namibia the largest beneficiary of Serval’s planned fundraising, accounting for about 67% of the US$10.6 million the company expects to have available, including existing cash.
Serval intends to mobilise two diamond drilling rigs to the Kaoko Basin, with the proposed drilling services agreement expected to take effect on 1 November 2026.
The programme represents a significant expansion of exploration activities in the basin, where Serval has identified several copper and silver prospects through geological mapping and surface sampling.
The company is targeting a maiden mineral resource estimate in 2027, which would provide the first formal assessment of the quantity and grade of mineralisation at its project.
Serval chief executive Robin Birchall said the proposed investment by Capital Drilling and its associated partners reflected confidence in the Namibian project.
“Capital Drilling’s support in the Fundraise is a major endorsement of the quality of our Kaoko Basin copper-silver (“Cu-Ag”) project in Namibia, where we have already delineated multiple high-grade Cu-Ag prospects and can aim to commence drilling by the end of this year.”
Capital Drilling and associated investors have agreed to invest £3.8 million (US$5 million) in Serval as part of the fundraising arrangements.
The investment is particularly significant because Capital Drilling is also expected to undertake the Namibian drilling programme through one of its subsidiaries.
Serval said the proposed drilling agreement would have a value of £3 million (US$4 million) and was expected to require an advance payment equivalent to the contract value.
The arrangement remains subject to the relevant fundraising and contractual conditions.
The latest announcement follows exploration results released earlier this month, when Serval reported selected surface samples from its Kaoko Basin prospects containing copper grades of up to 37.8% and silver grades of up to 573 grams per tonne.
Those results were obtained from individual surface samples rather than drilling intersections and therefore do not establish the average grade, size or economic viability of a mineral deposit.
Nevertheless, the findings have strengthened the company’s case for moving from surface exploration to a larger drilling programme.
Serval said systematic geological mapping and sampling had helped confirm previously identified mineralisation and locate additional copper and silver occurrences across its Namibian licences.
The company also has historical drilling information inherited through its acquisition of Kalahari Copper Limited, which provides a starting point for further exploration.
Serval completed the acquisition of Kalahari Copper Limited as part of its strategy to establish a substantial exploration position in Namibia and Botswana.
The acquisition gave the company exposure to two copper-bearing regions, the Kaoko Basin in Namibia and the Kalahari Copper Belt in Botswana.
Serval believes both regions share geological characteristics with the Central African Copper Belt, one of the world’s major copper-producing regions, although that comparison does not establish that its own licences contain commercially viable deposits.
The company has identified Namibia as its immediate drilling priority, while exploration in Botswana will initially concentrate on defining targets through geophysical surveys, soil sampling and other fieldwork.
Approximately US$1.3 million has been earmarked for Botswana, where Serval expects to define drilling targets by the second quarter of 2027 before undertaking an initial 3,000-metre drilling programme during the second half of that year.
The Botswana work will concentrate on the Sweet Thorn Pan and Somelo prospects, situated along the same geological trend as MMG’s Khoemacau copper operation.
Another US$200,000 has been allocated to exploration at the Duékoué project in Côte d’Ivoire, while approximately US$2 million is intended for working capital and fundraising-related costs.
The funding structure means that Namibia will receive substantially more exploration expenditure than the company’s other African projects combined.
Of the £6.5 million Serval intends to raise, approximately £2.5 million is expected from an initial placing of shares, £3.5 million from a conditional placing and £500,000 through direct subscriptions.
An additional retail offer is planned, which could increase the total amount raised.
The new shares are being offered at 25 pence each, with the fundraising scheduled to take place in two stages.
The first shares are expected to begin trading on London’s AIM market around 16 October, while the second tranche will require shareholder approval at a general meeting expected in early November.
Serval has been operating under a Capital Access Window since 7 October, with trading in its shares temporarily paused while the fundraising is arranged.
The company said trading would remain suspended under that arrangement until it announced the outcome of the fundraising.
Serval joined AIM in April 2026 and has since concentrated on expanding its copper exploration activities across Africa.
The proposed 20,000-metre drilling campaign in Namibia will be a major test of whether the copper and silver occurrences identified at surface extend into mineralised zones large enough to support a mineral resource estimate.
Although the company is targeting a maiden resource in 2027, it has not yet established a mineral reserve or announced a mine development decision for the Kaoko Basin project.
The immediate priority is therefore to complete the fundraising, finalise the drilling contract and begin testing the mineralisation identified across its Namibian prospects.
