Namib Minerals Building a Multi-Asset Mining Powerhouse in Zimbabwe and the DRC

By Peter Kennedy

Namib Minerals is set to become a publicly traded company in the U.S., a move that would give investors a window on high grade gold production in Zimbabwe as well as critical and battery minerals exploration in the Democratic Republic of Congo.

It is aiming to achieve that goal via a business combination with Hennessy Capital Investment Corp. VI [HCVI-NASDAQ], a special purpose acquisition company (SPAC) that is currently listed on the Nasdaq Global Market. HCVI was formed by Chairman and CEO Daniel J. Hennessy for the objective of merging with an established and competitive company operating in the industrial sector.

“Namib stood out as a compelling partner due to its history of underground mining in precious metals, opportunities for future expansion and its mission to create safe, sustainable and profitable operations in the communities it serves,’’ said Hennessy.

The combined public company (Pubco) is expected to be named Namib Minerals, and to list its shares and warrants on Nasdaq under the ticker symbols “NAMM,” and NAMMW respectively, subject to completion of the business combination and Nasdaq approval.

The aim is to build a leading gold mining company, while taking steps to become a multi-jurisdictional and battery metals mining company via the development of assets in the Democratic Republic of Congo (DRC). These consist of an interest in 13 copper and cobalt mining permits covering 205 square kilometres, which are located in the Haut Katanga and Lualaba Provinces in the DRC near Ivanhoe Mines Ltd. [IVN-TSX, IVPAF-OTC] and Zijin Mining Group’s Kamoa-Kakula Copper Complex, which ranks as one of the world’s largest copper mining operations.

The company’s key gold assets include the producing How Mine in Zimbabwe and two exploration-stage and former producing gold mines, the Mazowe and Redwing mines, which are also located in Zimbabwe. They constitute the diversified, cash-generating multi-asset portfolio owned by Greenstone, the African operating arm of Namib Minerals.  Near term cash flows from Zimbabwe are intended to fund, in part, the exploration and development of the battery metal assets in the DRC, with most near term cash flows funding the restart of the Mazowe and Redwing mines.

From 1941 to 2023, the How Mine produced over 1.78 million ounces of gold. It was expected to add to that tally by producing 27,000 ounces in 2024, down from 33,700 ounces in 2023 when all-in-sustaining costs came in at US$1,403 an ounce.

Located near Bulawayo, Zimbabwe, the How mine is currently generating cash flow alongside a strong history of production and one of the lowest reported cost profiles among its peer group. The How mine has a strong track record of consistently operating within budget and maintains additional identified underground resources, which may contribute to extending its mine life.

Mazowe and Redwing are former producing gold mines. The company aims to recommence production at both sites within 24 to 30 months upon receipt of project financing. Located 50 kilometres north of Harare (the capital and commercial hub of Zimbabwe), Mazowe produced 1.36 million ounces of gold from 1962 to 2018. Redwing is located 20 kilometres northwest of Mutare. It produced 650,000 ounces of gold from 1981 to 2019.

Measured and indicated resources at the three sites currently stand at 1.6 million ounces of gold at a grade of 3.92 g/t gold. On top of that is an inferred resource of 2.4 million ounces at a grade of 3.57 g/t gold. All three are underground operations.

The move to gain a Nasdaq listing is led by an established management team, with deep mining roots in Africa, and a proven track record of operational and development success. It is a team that is uniquely positioned to drive sustainable development and deliver long-term shareholder value.

Ibrahima Tall will serve as both CEO and a director at Namib Minerals. He began his mining career at the Kiniero Gold Mine in Guinea, a joint venture between Group Managem and Semafo (formerly a Canadian mining company), where he advanced to the role of Assistant Managing Director. In 2005, he was involved in the development of Semafo’s Samira Hill mine in Niger, correcting stability issues and training technical personnel. In 2020 Semafo was acquired by Endeavour Mining [EDV-TSX] in an approximate US$735 million deal.

The management team boasts over 25 years of experience in Zimbabwe, a proven mining jurisdiction where the mining sector accounted for 12% of GDP in 2022, according to Zidainvest.com. It is worth noting that Zimbabwe boasts an extensive road and railway network and the Zimbabwe Investment Development Agency reports over 4,000 documented mineral deposits. Active operations in Zimbabwe are mining gold, copper, lithium, nickel, coal and platinum group metals.

In May 2023, the President of Zimbabwe launched the Responsible Mining Initiative to combat illegal mining activities in Zimbabwe. He has also set a target of US$12 billion as a mining sector revenue goal.

In the DRC, work has started across 13 exploration permits in which Greenstone has an interest, where six holes have been drilled identifying copper and cobalt potential. Greenstone has been granted four years of exclusivity to explore mining possibilities under the permits. Current drilling has identified copper mineralization in intervals up to 3.28% copper within 150 metres of surface. Follow-up step out drilling will test further mineralization.

Following the expected receipt of a feasibility study and conversion of the exploration permits to exploitation permits, Namib Minerals and the holder of the exploration permits expect to establish an operating joint venture.