BREAKING: Namib Minerals to revive Mazowe and Redwing Mines
Namib Minerals, an established gold producer in Africa, is set to expand its operations significantly with the planned revival of Mazowe Mine also known as Jumbo and Redwing, in Zimbabwe. This strategic move is part of Namib’s broader vision to enhance its aggregate gold mining capacity and solidify its presence as a multi-asset producer in the region.
The restart of the two historically productive gold mines is a central focus of Namib’s growth plan, supported by the proceeds from a proposed business combination with Hennessy Capital Investment Corp. VI (HCVI). This transaction, valued at a pre-money enterprise value of $500 million, includes up to an additional 30 million contingent ordinary shares tied to the completion of operational milestones, such as the commercial production of the Mazowe and Redwing mines.
Strategic Business Combination with HCVI
Namib Minerals and HCVI entered into a definitive business combination agreement, expected to close in the fourth quarter of 2024. The combined public company, to be named “Namib Minerals,” will list its common stock and warrants on Nasdaq under the ticker symbols “NAMM” and “NAMMW,” respectively.
The business combination is expected to deliver net proceeds of approximately $91 million to Namib, along with an additional $60 million in funding from financing agreements. These funds will support Namib’s growth initiatives, including the restart of the Mazowe and Redwing mines and the development of prospective battery metals assets in the Democratic Republic of the Congo (DRC).
Ibrahima Tall, CEO of Namib Minerals, expressed enthusiasm about the business combination with HCVI, highlighting the potential to realize the full value of Namib’s mining assets. Tall emphasized Namib’s commitment to sustainable and profitable mining operations that support local communities.
“Today represents a significant day and an exciting milestone for Namib. This business combination with HCVI will enable us to continue growing our business while helping us to realize the full potential of our mining asset portfolio. Namib is committed to creating an environment of safe, sustainable and profitable mining operations that supports the local communities we serve. This transaction provides us a partner in HCVI that shares our focus on sustainable growth and our goal to return as a multi-asset producer in Africa. We believe our established management team is well-positioned to unlock significant value for our shareholders, and we look forward to working closely with the HCVI team to make these aspirations a reality,” Tall said.
Daniel Hennessy, Chairman and CEO of HCVI, echoed this sentiment, noting Namib’s compelling position in the sub-Saharan mining industry and its potential for future expansion. The collaboration aims to leverage the strengths of both organizations to drive growth and create shareholder value.
“We are extremely pleased to announce our business combination with Namib, an established gold-mining company in the sub-Saharan mining industry. HCVI was formed with the objective of merging with an established and competitive company operating in the industrial or energy-transition 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. We look forward to collaborating with Ibrahima and his team of veterans in the mining industry, as Namib continues to grow and create shareholder value,”Hennessy said.
How Mine
At the core of Namib’s current operations is How Mine, a high-grade underground gold mine near Bulawayo. How Mine has a well-established track record of consistent production, generating strong cash flow and operating with one of the lowest cost profiles among its peers. The mine’s reliable performance and additional identified underground resources provide a solid foundation for Namib’s growth plans.
How Mine is situated on the Bulawayo greenstone belt and exploits several individual mineralised pods situated within a sigmoidal structure which dips at 70̊ to 80̊ west. The pods are broadly cigar-shaped bodies comprising zones of enhanced hydrothermal alteration and gold mineralisation that plunge steeply. Mineralisation within the orebodies consists predominately of pyrite (>90%) with minor chalcopyrite and pyrrhotite and is associated with silification and carbonation. Gold is found in contact with sulphides, often in fractures, although there is also some free gold. Some silver occurs with the gold, increasing from 4% to 8% of gold as mining progresses down-dip.
Namib Minerals’ administrative office is registered in New York.