Noronex pockets first $1.25M from non-core Namibian copper sale

Noronex Limited has landed a welcome $1.25 million cash injection after receiving a first tranche payment linked to its proposed sale of the non-core Witvlei copper project in Namibia.

The company says purchaser, Joint Era Mining (JEM), has now concluded due diligence to its satisfaction, ticking off a key condition precedent under the binding heads of agreement and triggering the first payment.

Under the 80:20 split with joint venture partner Larchmont Holdings, Noronex expects to pocket $1 million from the first payment, recharging its coffers and lending a handy boost to its exploration budget.

The Witvlei deal was struck in November last year for a total staged consideration of $4.5M, with Noronex’s share pegged at $3.6M.

Following the initial payment, 60 per cent of the project-holding vehicle, Larchmont Investments, has been transferred to JEM, who immediately assume responsibility for 100 per cent of the expenditure obligations, statutory fees, rates, taxes and holding costs for the Witvlei licences. JEM are now progressing with the mining licence application.

Noronex says a second $1.25 million milestone payment will fall due upon grant of the mining licence, with the remaining $2M deferred consideration scheduled to be paid from a two per cent net smelter return royalty following the onset of commercial production.

This marks an important milestone in the divestment of the Witvlei Project. This transaction aligns with our strategy of rationalising non-core assets while directing capital towards the most prospective opportunities within our extensive Kalahari Copper Belt tenure.

Witvlei sits at the southwestern end of Noronex’s extensive Kalahari Copper Belt landholding in Namibia and represents only a small slice of the group’s broader claim package, making it an obvious candidate for the ‘non-core’ bin.

Management says the staged sale proceeds will help streamline its portfolio and redirect capital into higher-priority copper and uranium targets across Namibia and Botswana, including exploration of its promising Etango North uranium project.

Elsewhere, the company continues to advance its broader Namibian and Botswanan copper portfolio through a strategic alliance and earn-in arrangements with global mining and metals heavyweight South32.

With fresh cash landing in its account and further milestone payments potentially on the horizon, Noronex now has additional financial firepower to press ahead with exploration across its sprawling Kalahari Copper Belt tenure.

As the company sharpens its focus on higher-priority copper and uranium targets alongside its South32 partnership, the Witvlei divestment looks to have neatly cleared the decks for what could be the next phase of discovery.

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