43 / 64
September 2015
MODERN MINING
41
COUNTRY FOCUS –
NAMIBIA
feature
resource base. We also have a wider exploration
programme underway on the Namib property.”
The Namib project does not yet have a min-
ing licence but North River’s application has
been with the authorities since April last year
and the company is optimistic that it will soon
be approved. “Our belief is that the Namibian
government is very supportive of this project
and indeed we recently hosted a very suc-
cessful visit to the site – including a tour of
the underground mine – by the new Minister
of Mines and Energy in Namibia, Obeth
Kandjoze, and the Governor of Erongo Region,
Cleophas Mutjavikua,” says Beams. “They were
accompanied by a large delegation from the
Directorate of Mines. The visit formed part of a
wider programme of mine visits by the Minister
and we were honoured that Namib was one of
the projects included in his tour.”
Looking ahead, Beams says North River
envisages a two-phase approach to imple-
mentation of the project in terms of funding.
“With the backing and participation of our big-
gest shareholder, Greenstone Resources, we’re
currently engaged in an equity fund-raising to
cover the short term working capital required
to cover the FEED phase, the ongoing develop-
ment of the North decline and the exploration
drive, as well as the sourcing of plant and
equipment,” he states. “Our expectation is
that all this work will be completed by the end
of this year, clearing the way for our board to
make a final investment decision on the proj-
ect. This would then trigger a second debt and
equity fund-raising – subject, of course, to our
having received the mining licence – to cover
the cost of constructing the project.
“In all, we’re going to need to raise US$25
to US$30 million. This is not going to be easy
given current market conditions but balanc-
ing this is the fact that this is a very modest
capex figure for a new mine. Also, I think there
is an awareness that the commodities market
is cyclical and that it’s just a question of time
before prices recover at least some of the ground
they’ve lost over the past year or two. Certainly
we’ve been encouraged by the response we’ve
had in initial discussions with potential lend-
ers and I believe there is an excellent chance
that we will be able to raise the money and that
the project will enter construction in 2016.”
Photos courtesy of North River Resources