KEY POINTS
- Koryx raised $7.4 million to advance copper projects in Namibia and Zambia.
- The Haib project saw a 13-14% grade increase in recent resource updates.
- Koryx plans to begin a new 8,200-meter drilling program at Haib soon.
Koryx Copper has secured $7.4m in funding to support the development of copper in Africa, primarily Haib in Namibia.
The financing was completed through private placement to ensure that the company can commence drilling and exploration activities in Namibia and Zambia. Koryx intends to offer 9 million shares at C$1.10 per share and the stock has already surged after the news came out.
The market capitalisation of the company, which began trading at C$1.16, increased 6.5% to C$1.25 per share at 11:20 a.m. ET, giving it a market value of C$62.6 million ($46.5m).
Key projects in Africa
Haib site in southern Namibia contains a significant copper-molybdenum resource of which the mining development plan is at the preliminary economic assessment (PEA) level.
As stated by the PEA, the project should reach production rates of 35,332 tonnes of copper cathodes and 51,080 tonnes of copper sulphates annually. While the post-tax NPV of this undertaking is stated to be $ 611 million which has a probable IRR of 22.7% from a life of 24 years in mining.
Haib mining project has been explored for years with major players such as Rio Tinto and Falconbridge.
Legal victory brings new momentum
According to Mining.com, Koryx has recently emerged victorious in the court over the miners’ license. Namibia’s mining ministry had denied it a renewal in 2021, saying it hadn’t met the feasibility phase with this element.
But in March 2023, the Namibia High Court ruled in favour of Koryx and the company started to work again. So far, Koryx has accomplished the 10,000-meter drilling programme, which boosted the numbers of the project.
Expanding resources
Subsequent to the most recent drill results, Koryx has revised the mineral resource estimate for Haib.
The project currently has indicated copper resources amounting 414 million tonnes and of inferred copper resources totaling 345 million tonnes. These updates equate to a 13 to 14% increase on the overall grade, as there has not been a lot of drilling in recent years.
