Noronex Limited has received a $1.25 million cash injection from the first tranche payment for the sale of its non-core Witvlei copper project in Namibia. The payment was triggered after purchaser Joint Era Mining (JEM) completed due diligence to its satisfaction, fulfilling a key condition precedent under the binding heads of agreement.
Under an 80:20 split with joint venture partner Larchmont Holdings, Noronex expects to pocket $1 million from the first payment. The total staged consideration for the Witvlei deal, struck in November last year, is $4.5 million, with Noronex's share at $3.6 million.
Following the initial payment, 60% of the project-holding vehicle Larchmont Investments has been transferred to JEM, who now assume full responsibility for expenditure obligations, statutory fees, rates, taxes, and holding costs for the Witvlei licences. JEM is progressing with the mining licence application.
A second $1.25 million milestone payment will be due upon grant of the mining licence, with the remaining $2 million deferred consideration to be paid from a 2% net smelter return royalty after commercial production begins. The sale aligns with Noronex's strategy of rationalising non-core assets and directing capital towards higher-priority opportunities in the Kalahari Copper Belt.
Witvlei, located at the southwestern end of Noronex's Kalahari Copper Belt landholding, represents a small portion of the group's claim package. The proceeds will help streamline the portfolio and redirect capital into copper and uranium targets in Namibia and Botswana, including the Etango North uranium project.
Noronex continues to advance its copper portfolio through a strategic alliance with South32. With fresh cash and potential milestone payments ahead, the company has additional financial firepower for exploration across its Kalahari Copper Belt tenure.
