- The Namibian mining industry is booming on the back of growing investments into the sector.
- As per the latest annual mining review, the exploration expenditures by the mining companies increased by 55% in 2020.
- Upon listing, Arcadia’s primary focus would be to continue its accelerated exploration journey and complete the feasibility study for the Swanson Tantalum/Lithium project.
- Arcadia is anticipated to raise a sum of over AU$6.4 million from the initial public offering of over 32 million CHESS Depositary Interests (CDIs).
Namibia, a Southern African country along the Atlantic Ocean and sharing its boundaries with gold and battery minerals-rich countries of South Africa, Angola and Botswana, has been a significant contributor to the global minerals industry.
Namibia – Home to the hottest exploration grounds
In fact, the Namibian mineral industry has been among the leading suppliers of diamond, gold, precious metals, uranium, and base metals. The mining industry contributes about 11.5% towards the gross domestic product (GDP) of Namibia and is the mainstay of the country’s economy.
Facts about the Namibian mining industry Source: Chamber of Mines Annual review 2019
The African nation is home to over 25 mines and holds an impressive feat to its name with production of over 100 minerals. Also, the mining industry directly employed over 14,435 people in 2020. As per the latest annual mining review by the Namibia Chamber of Mines, the exploration expenditures by mining companies increased by 55% in 2020 to N$264.5 million.
The gold price rally and subsequent impressive recovery in the prices of industrial metals led to higher exploration activity across the country. Further, the automobile and electronics giants have shown interests in securing reliable supplies for battery metals like lithium, nickel and copper.
Namibia-focused exploration and development company with strategic assets under portfolio
Arcadia Minerals Limited (ASX:AM7) is a Guernsey-domiciled minerals exploration and development company with extensive exposure across Namibia and is set to storm the Australian Stock Exchange in the coming few days.
In the past three years, Arcadia and its entities have been on a buying spree to acquire premium mineral projects. Under Arcadia’s banner, the company will own significant interests in four advanced exploration projects. The Company has been undertaking exploration activities and studies at the portfolio projects. The mineral projects in order of development stage are as follows –
- Swanson Tantalum/Lithium Project
- Kum-Kum Ni-Cu-PGM Project
- Karibib Copper/Gold Project
- Bitterwasser Lithium Project
Portfolio projects under Arcadia’s banner Source: Arcadia Minerals Company Presentation April 2021
Upon listing, Arcadia’s primary focus would be to continue its accelerated exploration journey and complete the feasibility study for the Swanson Tantalum/Lithium project, which is situated in the Karas Region in the southern part of Namibia. The Haib deposit in the Karas region is home to the oldest porphyry deposit in the world.
It is to be noted that Swanson is an advanced minerals project with early development potential. The Company will continue to seek additional exploration opportunities with potential upside in Namibia. Arcadia proposes to acquire over 80% stake in the Swanson project.
Tantalum is widely used in alloys for the making of gas turbines in the oil and gas (O&G) and aerospace sectors, as tantalum capacitors in electronics and automobile, as tantalum oxide (Ta2O5) in camera and optics, and as tantalum carbides for boring and cutting tools.
Development strategy of the mineral projects Source: Arcadia Minerals Company Presentation April 2021
Further, the company also owns a strong portfolio of promising lithium, battery and precious metal projects in Namibia. The portfolio projects enjoy existing regional infrastructure in the democratic African country.
Capital allocation for different mineral projects Source: Arcadia Minerals Company Presentation April 2021
Arcadia’s action-packed exploration strategy is anticipated to generate extensive potential news and unlock the full potential of the mineral projects. The company is seeking to raise a sum of AU$6.4 million from the initial public offering (IPO) of over 32 million CHESS Depositary Interests (CDIs).
Overall, Arcadia minerals owns a well-balanced yet diversified portfolio of projects with significant exposure to the burgeoning battery and precious metals sectors and intends to unlock the full potential of its mineral projects following the IPO.