Conditional approval for Gecko sale

Ogone Tlhage - Namibia Rare Earths this month announced that it had received conditional approval for the planned purchase of exploration properties from Gecko Namibia.

Namibia Rare Earths announced last year December that it would be expanding its mineral base following the conclusion of the acquisition of Gecko Namibia’s exploration licences.

This month, Namibia Rare Earths announced that it had received conditional approval to move ahead with the planned acquisition from the Toronto Stock Exchange.

“The company is focused on the regulatory process to obtain the consent of the exchange for the property acquisition and the private placement. Exchange conditional approval of the property acquisition and the private placement has been received and the Company is working to fulfil all conditions for final approvals. These conditions include the completion of background searches by the Toronto Stock Exchange on representatives of Gecko who will become insiders of Namibia Rare Earths,” it said in a brief statement.

Namibia Rare Earths had previously said the strategic partnership formed with Gecko Namibia would strengthen its operational capacities for mineral processing and mine development.

Private placement

Namibia Rare Earths will complete a private placement in Canada to raise the money for the planned acquisition of Gecko Namibia’s resources, which span over 6 850 square kilometres.

“Namibia Rare Earths has entered into an agreement with Gecko Namibia to acquire its 95% interest in a portfolio of exploration properties consisting of 14 exploration prospecting licences, four of which are pending, one mineral deposit retention licence and Gecko Namibia’s rights under an option agreement to acquire a 60% interest in a further exploration prospecting licence which interest may, subject to the terms of the option agreement, be increased to 80%,” Namibia Rare Earths said.

The Canadian mining house said the transaction would provide it with a high-quality diversified portfolio of minerals.

“This transaction provides Namibia Rare Earths with a high-quality, diversified portfolio of critical metals and at the same time has secured a highly experienced strategic partner. Gecko Namibia and its subsidiaries are substantial participants in the Namibian resource sector with 327 employees and a proven track record in the mining industry,” Namibia Rare Earths said.

Diversification

The transaction also signalled its move away from rare earths to other critical commodities, it said.

“The Gecko Namibia portfolio of properties will expand the company’s commodity base from solely rare earths to a variety of highly critical commodities including cobalt, copper, zinc, lithium, graphite, tantalum, niobium, nickel, and gold,” the miner said in a statement.

The development bodes well for Namibia Rare Earths, which is due to receive a mining licence for the Lofdal project situated near Khorixas in the Kunene Region.

The ministry of environment and tourism issued an environmental clearance certificate setting in motion planned mining development.

Namibia Rare Earths intends to develop a 840 000 tonnes per annum open-pit mining operation together with processing facilities, waste rock dumps and tailings storage facility to produce heavy rare earth concentrates.