Unicorn Mineral Resources secures £1.25m loan
Unicorn Mineral Resources (UMR) has agreed the principal terms of a one-year, £1.25-million unsecured loan facility with its chairperson Paddy Doherty to fund the company's proposed acquisition of the Klein Aub copper mine, in Namibia.
The funds will also be used for working capital requirements and operational expenditure across the company’s activities in Namibia and Ireland.
The loan facility remains subject to completion of formal loan documentation, signing of the formal sale and purchase agreements for the proposed Klein Aub acquisition and receipt of any applicable regulatory approvals. UMR expects these to be completed in July.
In November last year, UMR signed heads of terms to acquire the Klein Aub mine, which is situated on the south-western extremity of the Kalahari Copper Belt.
UMR notes on its website that three orebodies were mined during the 21 years that the mine was in operation up to 1987, with 5.5-million tons of ore produced. The average ore grade was 2% copper and 50 g/t silver. During operation, the total mineable reserves were estimated to be 7.5-million tons and, therefore, it is inferred that about two-million tons of ore remain in situ.