Namibia’s hidden silver wealth has been thrust into the spotlight with a landmark deal between Vancouver-based Versamet Royalties Corporation and Appian Capital Advisory.
Valued at up to US$170 million (N$3.1 billion), the transaction grants Versamet a 90 per cent silver stream on the Rosh Pinah Zinc mine in the ǁKaras Region and a 2.75 per cent net smelter return royalty on the Santa Rita polymetallic mine in Brazil.
Under the agreement, Versamet will receive 90 per cent of the payable silver from Rosh Pinah by paying only 10 per cent of the market price per ounce.
Once 3.1 million ounces have been delivered, Versamet’s entitlement reduces to 45 per cent for the remainder of the mine’s life.
During the initial phase, silver deliveries will be determined by zinc output until either 1.35 million ounces are delivered or the end of 2028, after which the stream will be based on actual payable silver production.
The Santa Rita component secures Versamet a 2.75 per cent life-of-mine royalty across both the open pit and planned underground operations.
The royalty covers more than 40,000 hectares of current mining and exploration licences.
The deal comprises an upfront cash payment of approximately US$125 million (N$2.3 billion) and contingent payments of up to approximately US$45 million (N$820 million).
These milestones include US$22.5 million when one million tonnes of underground ore have been processed and US$22.5 million when underground throughput reaches 12,500 tonnes per day for 90 consecutive days, both of which are expected to be achieved by July 2035.
Versamet financed the acquisition through US$180 million in credit facilities with the Bank of Montreal and the National Bank of Canada.
The package includes a new US$80 million term loan maturing in 2028, along with an expanded revolving facility of US$100 million.
The stream and royalty become effective from July 1, 2025.
Versamet Royalties Corporation is a Canadian-listed royalty and streaming company focused on building a portfolio of precious and critical metals.
By securing long-life interests in producing mines, Versamet has been expanding its asset base, focusing on cash flow and exposure to growth projects across multiple jurisdictions.
Appian Capital Advisory is a London-headquartered private equity group dedicated to the mining sector. Since its founding in 2012, Appian has managed billions in assets, acquiring and developing mining projects globally before crystallising value through sales, mergers, or streaming and royalty deals.
The Rosh Pinah and Santa Rita assets were part of its broader portfolio of investments across Africa and South America.
Rosh Pinah Zinc mine, located near the Orange River in southern Namibia, has been in operation since 1969 and is one of the country’s longest-running underground mines.
It produces zinc, lead, and silver, with ore processed at an on-site concentrator.
The mine is undergoing the “RP2.0” expansion, aimed at increasing annual throughput from 700,000 tonnes to 1.3 million tonnes by 2026, extending mine life and boosting silver output alongside zinc and lead.
Santa Rita mine in Bahia, Brazil, is regarded as one of the world’s most extensive open-pit nickel sulphide operations. The mine has produced nickel, copper, cobalt, and by-product metals and is now being positioned for underground expansion to unlock deeper resources. The transition to underground mining is designed to extend its life by several decades and significantly increase production capacity.
The agreement provides immediate cash flow to Versamet from two producing mines and secures Appian’s exit from two high-quality assets, while also highlighting Namibia’s often-overlooked silver resource.
