Copper 360 updates on the acquisition of Nama Copper
Referring to the media release dated 29 November 2023 where the Company announced the acquisition of Nama Copper Resources Proprietary Limited from Mazule Resources Proprietary Limited (“Mazule”) for R200 million. At the time the Company noted that it would conduct a four-month due diligence on Mazule, coinciding with the initial cash consideration, which occurred on 28 November 2023, the date the agreement was signed.
HIGHLIGHTS OF THE NAMA COPPER ACQUISITION
• Due diligence has been completed successfully.
• The Nama Copper plant has exceeded our expectations vis-a-vis structure, integrity, and performance, the latter based on a ‘wet-run’ test phase.
• An accountable management team was appointed.
• An amount of R140.5 million has been paid to date.
The Company completed its due diligence and paid a total of R140.5 million to Mazule; a further R9.5 million is due in the next two weeks.
The outstanding R50 million owed to Mazule will now be paid in cash across three equal instalments dated March, April, and May 2024. These payments will be financed, among other things, by prepayments from the new offtake partner as detailed further below.
PRODUCTION AT NAMA COPPER
As per the lease agreement with Mazule, the Company has taken over the operation of the plant, and production commenced on 13 March 2024. Commissioning of the plant will take place during the following three weeks during which time an estimated 45 tonnes of copper will be produced. Production will be ramped up to reach an estimated 230 tonnes of copper within two months thereafter.
